Akron, Ohio-based Summa Health has finalized a deal with General Catalyst’s Health Assurance Transformation Company, creating a new partnership the organizations say is designed to strengthen operations and modernize care delivery.
The agreement, completed Oct. 1, transitions Summa into a for-profit, taxable health system backed by a “significant investment” from HATCo, a subsidiary of the venture capital firm General Catalyst, according to a news release.
In November, Summa and HATCo signed a $485 million definitive agreement to pursue the transaction, Becker’s previously reported. The purchase amount was intended to help Summa pay off $850 million in debt, transition to a for-profit structure and fund a separately governed community foundation in Akron.
The deal received conditional approval from Ohio Attorney General Dave Yost in June. His office office outlined 10 requirements, including the transfer of $30 million in cash and equity to the foundation, restrictions on the sale of equity holdings for three years, and ongoing oversight of HATCo’s commitments for 10 years following the transaction.
Proceeds from the finalized deal will now establish the Trailhead Community Health Foundation of Greater Akron, which will operate independently of both Summa Health and HATCo, according to the release. The foundation will focus on expanding access to care and driving long-term community health improvements.
While leaders described the transaction as a significant shift in structure, they said Summa’s commitment to charity care, community benefit and essential services will remain unchanged.
General Catalyst CEO Hemant Taneja called the partnership a “generational investment in community health infrastructure” and said the model in Akron could serve as a blueprint for other health systems.
