A community group is issuing demands of General Catalyst prior to its acquisition of Akron, Ohio-based Summa Health, the Akron Beacon Journal reported.
The venture capital firm agreed in November to purchase the two-hospital system for $485 million as part of its Health Assurance Transformation Corp., or HATCo, led by former health system executive Marc Harrison, MD. Dr. Harrison previously told Becker’s that this is “neither a VC nor a private equity play” and that “we’re in this for years and decades.”
“Akron deserves a healthcare system that puts patients before profits,” Matthew Charlebois, a leader of Summa Is Not For Sale, said in a statement to the Beacon Journal. “General Catalyst must commit to transparency, accountability, and a long-term investment in Summa Health that prioritizes quality care and accessibility for all residents.”
Among the group’s demands are for an outside appraiser to determine the value of Summa Health, the full sale price to go to a community foundation, and the company to commit to avoiding sale-leaseback deals for Summa Health real estate, according to the March 21 story.
“The proposed purchase price of $485 million was determined following a fair market valuation conducted by an independent third-party company that is recognized as a national expert in healthcare transaction advisory services,” a Summa Health spokesperson told the newspaper.
