Akron-based Summa Health is now officially a for-profit hospital system following the completion of its sale to the Health Assurance Transformation Co., or HATCo, a subsidiary of General Catalyst, the organizations announced Wednesday in a joint news release.
“Today is the culmination of months of collaboration between our organizations and marks the start of a new chapter for Summa Health and those we serve,” Summa President and CEO Dr. Cliff Deveny said in a statement. “With HATCo, we can preserve our community roots, invest in our team, and take bold steps to modernize and expand access to ensure Summa remains strong for decades to come.”
HATCo acquired Summa for $485 million. Leaders say the partnership will stabilize operations, support staff, and expand access for patients.
The Ohio Attorney General’s office conditionally approved the sale in June, as long as HATCo would agree to transfer $30 million, half in cash and half in stocks, to Summa's nonprofit foundation. The community foundation, Trailhead Community Health Foundation of Greater Akron, will invest the funds in local health initiatives independently from Summa and HATCo.
But some concerns remain.
“Hospitals acquired by private equity firms often try to raise profits by denying care,” said Jeff Barge, spokesperson for the advocacy group Summa Is Not for Sale. “That’s a particular danger when a hospital owns its own insurer as with Summa.”
Summit County Executive Ilene Shapiro urged the community to have patience with the health system when asked about the finalized sale during the annual State of the County speech at the John S. Knight Center in Akron Wednesday.
"We should all give Summa as much positive energy as we can and help them navigate the transition and understand there may be some bumps in the road during a consolidation," she said.
