Ohio AG Approves Summa Health Sale to General Catalyst's HATCo with Conditions

Ohio Attorney General Dave Yost has given conditional approval for the sale of Summa Health to Health Assurance Transformation Company (HATCo), a subsidiary of venture capital firm General Catalyst. The $485 million acquisition, first announced in November 2024, comes with a set of 10 conditions aimed at protecting the nonprofit mission of Summa Health and ensuring continued investment in the greater Akron community.

Sale Price Increase and Community Benefits

One of the key conditions set by AG Yost is an increase in the sale price by $15 million in cash, with an additional $15 million in equity to be transferred to Summa's existing nonprofit foundation. This adjustment brings the total transaction value to $515 million and is intended to benefit the people served by the health system in Summit County and surrounding areas.

The Attorney General's office has also stipulated that for three years after closing, the Foundation will not sell its $15 million equity interest. This provision aims to maintain a level of local ownership and oversight in the newly structured organization.

Regulatory Oversight and Compliance

HATCo has agreed to several conditions that enhance regulatory oversight and ensure compliance with the terms of the sale. For a period of 10 years following the closing:

• The Ohio Attorney General will retain jurisdiction to enforce HATCo's ongoing obligations to the hospital system.
• HATCo will provide an annual report to the Attorney General outlining its compliance with post-closing obligations.
• The company will notify the Attorney General of certain transactions that could trigger antitrust concerns.

Additionally, HATCo has committed to cooperating with any future Attorney General investigations, further solidifying the state's ability to monitor the deal's long-term impact.

Community Concerns and Future Outlook

The sale has faced opposition from local advocates, including the coalition Summa Is Not For Sale, which has expressed concerns about the deal's price tag and potential impact on local care. While the group acknowledges the improvements made by AG Yost, including the $30 million increase in sale price, they maintain that the true market value of Summa Health exceeds $800 million.

As the deal moves forward, Summa Health and HATCo must conduct a public hearing within 45 days to address comments on the proposed use of the sale proceeds. This step, along with the conditions set by the Attorney General, aims to ensure transparency and community involvement in the transition process.

The acquisition of Summa Health by HATCo represents a significant development in the healthcare landscape of northeastern Ohio. As the deal progresses, industry observers will be closely watching to see how this venture capital-backed model impacts the delivery of healthcare services and the long-term sustainability of the health system.