General Catalyst's Health Assurance Transformation Corp. announced plans to acquire Akron, Ohio-based Summa Health Jan. 17 in a bid to broaden its healthcare portfolio. The transaction may improve the hospital's financial position and debt situation.
Summa CEO Cliff Deveny, MD, told Cleveland.com that HATCo would retire $800 million in debt and convert the hospital from a nonprofit to a for-profit entity. The transaction will allow Summa to pay off its debt and then the system will put extra funds into a large community foundation, according to the report.
Summa will also be able to meet employee and retiree obligations if the deal goes through. The terms of the deal were not disclosed.
Marc Harrison, MD, CEO of HATCo, described the Summa as being small enough "to actually make transformational change."