The proposed acquisition of Akron, Ohio-based Summa Health by Health Assurance Transformation Corp., or HATCo, is making progress, The Alliance Review reported July 2.
In January, HATCo, a company owned by venture capital firm General Catalyst, signed a letter of intent to acquire Summa Health and transform the health system into a for-profit entity.
According to the news outlet, Summa hoped the deal would be closed by midsummer, but it has not been clear if that will materialize. Elected officials told The Alliance Review that Summa and HATCo have not provided updates on the deal since the spring.
A Summa spokesperson told the news outlet it continues "to work closely with HATCo on the due diligence process and finalizing the definitive agreement." If an agreement is reached, it would then be submitted to the Ohio secretary of state for approval. A spokeswoman with the secretary of state's office told the news outlet that Summa and HATCo have not submitted anything for consideration.
But Ohio House Bill 158, which passed the Legislature in June, is hinting that the deal may be on track.
The bill, which was aimed at governing barbers and cosmetologists, added a provision allowing previously nonprofit hospitals to retain their police forces after they become for-profit entities. Although the bill does not mention Summa, co-sponsor of the bill Rep. Bill Roemer said the provision is for the health system.
According to Mr. Roemer, Ohio law previously did not allow for-profit health systems to have certified police. Summa, which has its own police department, reached out to Mr. Roemer asking him for help, and he proposed a provision for House Bill 158.
House Bill 158 is awaiting Gov. Mike DeWine's signature. According to Mr. Roemer, the governor is expected to either sign the bill or let it become law automatically after 10 days.
Summa Health encompasses emergency, acute, critical, outpatient and home care services. Upon obtaining regulatory approval and completing the transaction, Summa Health will transition into a wholly owned subsidiary of HATCo.