Akron, Ohio-based Summa Health has reached a $485 million definitive agreement to join Health Assurance Transformation Corp., according to a Nov. 7 news release.
Here are seven things to know:
1. The parties shared plans for HATCo to purchase Summa Health in January, with plans to close the deal by the end of 2024.
2. Under the agreement, the $485 million purchase amount will help Summa Health, which will transition into a for-profit structure, pay off $850 million in debt. Summa Health's remaining cash will fund a new, separately governed community foundation to support community investment in the Akron area.
3. HATCo has committed $350 million of capital funding in the first five years of the acquisition to ensure technology growth and needed resources are available. It has also committed $200 million for transformative and strategic investments to help push innovation in the first seven years under the agreement.
4. "As part of HATCo, Summa Health will be better positioned to build upon our existing strengths and capabilities while also benefiting from new opportunities and technology," Cliff Deveny, MD, president and CEO of Summa Health, said in the release. "Our goals are to expand access to care and improve the experience for our patients, providers and staff."
5. Summa Health's employees, providers and leadership will be part of the transition. The health system will also maintain its community benefit, essential services and charity care policy to grow and improve care access.
6. Both parties have started working on a transformation plan for groups representing Summa Health to help map out future opportunities. They are also submitting applications related to the transaction to regulatory agencies.
7. Summa Health comprises multiple hospitals, community medical centers, a health plan, an accountable care organization, a multi-specialty physician organization, research and the Summa Health Foundation.