General Catalyst firm to close $485M purchase of Ohio hospital system
Health Assurance Transformation LLC, a subsidiary of the venture capital giant, is slated to complete the acquisition of Summa Health.
Two years ago, General Catalyst unveiled the creation of a subsidiary, Health Assurance Transformation LLC, and said the goal was to buy a health system and use it as a model to change the industry.
The firm known as HATCo, a subsidiary of General Catalyst, is slated to complete the acquisition of Summa Health, a nonprofit system based in Akron, Ohio.
Now, the purchase is slated to be complete. Today, the firm known as HATCo is slated to complete the acquisition of Summa Health, a nonprofit system based in Akron, Ohio.
Michael Bernstein, Summa Health’s director of corporate communications, confirmed in an email to Chief Healthcare Executive® that the deal is slated to be finalized Oct. 1. The Akron Beacon-Journal first reported the deal is slated to close this week.
Under the deal, Summa Health will become a for-profit system. Summa has said that the deal will help ensure the organization’s long-term viability and expand healthcare services for communities in northeastern Ohio.
Summa operates acute care hospital campuses in Akron and Barberton, a rehabilitation hospital and community medical centers. The system also operates a health plan with 60,000 covered lives and an accountable care organization.
HATCo and Summa Health first disclosed the exploration of a deal in January 2024. Last November, HATCo said it has reached a definitive agreement to buy Summa Health in a $485 million transaction.
The Ohio Attorney General’s Office, which reviews healthcare transactions, signed off on the deal in June. Ohio Attorney General Dave Yost said he’s comfortable with the purchase.
“We’re confident that the agreement includes enforceable commitments that will secure Summa’s nonprofit mission, protect patient care, and ensure continued investment in the greater Akron community,” Yost said in the statement. “With proper safeguards in place, this has the potential to strengthen health care in northeastern Ohio for years to come.”
The attorney general’s office has imposed some conditions on the transaction, including the commitment of $15 million in cash and another $15 million in equity for Summa’s charitable foundation.
The attorney general’s office also said it will retain jurisdiction for 10 years to ensure HATCo meets its obligations to the hospital system, and HATCo must submit annual reports on its compliance with the agreement.
Summa Health controls 53% of the market in its primary service area in northeastern Ohio, but Cleveland Clinic’s Akron General Hospital has gained some ground recently, Fitch Ratings said in a June 2025 report. Summa Health holds a “BBB+” bond rating from Fitch Ratings and has a stable outlook, Fitch.
HATCo has pledged to invest hundreds of millions of dollars in improvements for Summa Health. The company has pledged $350 million in the first five years to invest in technologies. And HATCo has also said it will pour an additional $200 million in strategic investments over the first seven years.
Summa has said General Catalyst, through HATCo, has committed to the key elements of Summa’s mission, including serving all in the region, investing in medical education, and retaining all employees as of closing.
The health system said the transaction “represents a long-term investment into the local delivery of healthcare services for Summa’s regional communities.”
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