General Catalyst’s HATCo acquires Summa Health to “transform the future of healthcare”

Akron, Ohio-based Summa Health and General Catalyst's Health Assurance Transformation Corporation (HATCo) announced that the two organizations have signed a non-binding Letter of Intent outlining HATCo's planned acquisition of Summa Health.

This "strategic alignment" marks the beginning of a long-term, transformational journey to create a new, more proactive, affordable, and equitable system of community-based, lifelong healthcare.

What's next?

HATCo will work with Summa Health to advance healthcare innovation based on the strength of Summa Health's large, integrated healthcare delivery system and its proven track record in leading meaningful changes to care delivery. As part of HATCo, Summa Health will build upon its existing strengths and capabilities and create new opportunities to leverage innovative technology that will improve the health of communities across the Greater Akron region.

Summa Health's leadership team will work closely with HATCo — including Dr. Marc Harrison, HATCo CEO and Hemant Taneja, General Catalyst CEO — to leverage their collaborative, complementary expertise in healthcare and health systems to plan the transformation journey. HATCo's investment into Summa Health will drive not only near-term benefits to the organization and the patients it serves but also sustainable, long-term transformation through a true shift to value-based care.

Within the new structure, Summa Health will become a for-profit organization and HATCo and Summa Health will maintain the health system's commitment to charity care. In addition, as a result of the transaction, a community foundation will be created that advances Summa Health's mission through increased, focused investment into social determinants of health that benefit the entire Greater Akron area. The health system delivered $210.1 million in community benefits to area residents in 2022 and is deeply committed to continuing this long-standing work to improve the health of its region.

HATCo and Summa Health are now entering a due diligence period during which they will work together to further evaluate and define details of the proposed relationship while carefully reviewing information from both organizations before finalizing a definitive agreement. Summa Health will continue to provide the same essential services, current and planned commitments will proceed uninterrupted, and the organization will continue to invest in Ohio employees and initiatives.

The two organizations anticipate finalizing a definitive agreement in the next several months. Following receipt of required regulatory approvals and transaction closing, Summa Health will become a wholly owned subsidiary of HATCo and continue its focus on growth and enhanced access to care.

On the record

"This new structure will better serve our communities clinically, economically and socially. With HATCo, Summa Health will be able to increase local investment and introduce new resources that allow us to expand access to affordable, quality, coordinated care," said Cliff Deveny, M.D., Summa Health President and CEO. "We're excited about new opportunities to enhance the patient and provider experience, strengthen our recruitment pipeline, build upon our commitment to medical education and training, and expand the growth of SummaCare to advance health equity and population health across the communities we serve."

"HATCo is grounded in the belief that by making health systems more profitable, vibrant and innovative, they will be better equipped to serve everyone in their communities with greater impact. We are thrilled to partner with Summa Health to bring this vision to life," said Marc Harrison, M.D., co-founder and CEO of HATCo. "The current national healthcare system is fragmented and creates barriers to care and wellness. In partnership with Summa Health, we intend to prove that a model that's better for patients can also be good for business and create a blueprint for other systems and communities."

"Our shared vision is to create a replicable healthcare model that marks a true and meaningful shift from a 'sick care' system to a resilient, proactive model of health assurance," said Hemant Taneja, CEO of General Catalyst, and founder and chairman of HATCo. "By doing so, we will help people stay well, bend the cost curve through innovation and make quality care more affordable and accessible. I couldn't be more excited to collaborate and execute on that vision with Summa Health and HATCo. We aim to improve the health and wellbeing of the greater Akron community, create a standard for the health system of the future, and inspire communities across America to adopt this vision."

The context

Summa Health is one of the largest integrated healthcare delivery systems in Ohio. Encompassing a network of hospitals, community medical centers, a health plan, an accountable care organization, a multi-specialty physician organization, medical education, research, and the Summa Health Foundation - it is nationally renowned for excellence in patient care and for exceptional approaches to healthcare delivery. Summa Health's clinical services are consistently recognized by the American Nurses Credentialing Center (Magnet status), The Joint Commission, American Hospital Association, U.S. News and World Report, Healthgrades, Thomson Reuters and The Leapfrog Group.

As we previously wrote, this is the first time a VC fund is acquiring a health system to allow it to test new technologies and implement them faster. General Catalyst portfolio companies will be those benefiting the most as well as the general public, with the latest health innovations coming faster to market as a result.