Venture capital firm General Catalyst plans to acquire Akron, Ohio-based Summa Health and transform the health system into a for-profit entity.
Summa Health, which encompasses emergency, acute, critical, outpatient and home care services, is set to become a fully owned subsidiary of General Catalyst through the Health Assurance Transformation Corp., or HATCo, an entity it owns, according to a Jan. 17 news release from Summa Health.
The two organizations are embarking on a due diligence period to assess and refine specifics of the proposed affiliation.
Throughout this process, Summa Health said it is committed to maintaining essential services without interruption, honoring current and planned commitments, and sustaining investments in Ohio employees and initiatives, the release said.
The two organizations anticipate locking in a definitive agreement in the coming months.
Upon obtaining regulatory approval and completing the transaction, Summa Health will transition into a wholly owned subsidiary of HATCo.
The transaction will also lead to the establishment of a community foundation aimed at advancing Summa Health's mission. This foundation will channel increased, targeted investments into social determinants of health, according to the release.
This is the venture capital firm's first hospital purchase after months of stating its goal to acquire a health system.