VC Basic Catalyst’s HATCo to Purchase Akron’s Summa Well being

In October 2023, former Intermountain Well being CEO Marc Harrison, M.D., introduced he would lead a brand new firm owned by enterprise capital agency Basic Catalyst referred to as Well being Assurance Transformation Corp. (HATCo). Moreover working with Basic Catalyst’s well being system companions on remodeling their operations, he defined that HATCo would additionally purchase and function a well being system the place it may show the blueprint for this transformation. Now Harrison has introduced that the well being system HATCO is planning to buy is Akron-based Summa Well being, one of many largest built-in healthcare supply methods in Ohio.

If the deal meets regulatory approval, the at the moment nonprofit Summa Well being will turn into a for-profit subsidiary of HATCo, and Summa Well being will maintain its present management and preserve its dedication to charity care. As well as, because of the transaction, a group basis could be created to put money into social determinants of well being in ways in which profit your entire Larger Akron space, HATCo stated. The sale worth was not disclosed. 

Summa contains Akron Metropolis Hospital, the Barberton campus, SummaCare insurance coverage firm and outpatient places and doctor workplaces throughout the area, and has greater than 8,000 staff, in accordance with a narrative within the Akron Beacon Journal newspaper. 

The Beacon Journal reported that Summa has been seeking to discover a new associate for a number of years. Most just lately, a deal to promote Summa to Michigan-based Beaumont Well being fell via in 2020. 

Harrison, HATCo’s CEO, and Hemant Taneja, Basic Catalyst CEO, will work with Summa’s leaders to leverage their collaborative, complementary experience in healthcare and well being methods to plan the transformation journey.

“This new construction will higher serve our communities clinically, economically and socially. With HATCo, Summa Well being will be capable to enhance native funding and introduce new sources that enable us to broaden entry to inexpensive, high quality, coordinated care,” stated Cliff Deveny, M.D., Summa Well being president and CEO, in an announcement. “We’re enthusiastic about new alternatives to boost the affected person and supplier expertise, strengthen our recruitment pipeline, construct upon our dedication to medical schooling and coaching, and broaden the expansion of SummaCare to advance well being fairness and inhabitants well being throughout the communities we serve.” 

In Might 2022, Intermountain and Basic Catalyst introduced a collaboration to drive innovation throughout the Utah-based well being system with the targets of increasing value-based care, decreasing whole prices of care, offering world-class affected person experiences, and reaching well being fairness goals. Intermountain stated it could leverage Well being Assurance Community, which is a bunch of tech innovation firms inside Basic Catalyst’s funding portfolio. These firms embody Transcarent, Olive, Sprinter Well being, Commure, and Cadence, amongst others. 

In August 2022, Harrison introduced he was leaving Intermountain to run the healthcare platform enterprise for Basic Catalyst. 

“HATCo is grounded within the perception that by making well being methods extra worthwhile, vibrant and revolutionary, they are going to be higher outfitted to serve everybody of their communities with higher influence. We’re thrilled to associate with Summa Well being to deliver this imaginative and prescient to life,” stated Harrison, in an announcement. “The present nationwide healthcare system is fragmented and creates obstacles to care and wellness. In partnership with Summa Well being, we intend to show {that a} mannequin that’s higher for sufferers will also be good for enterprise and create a blueprint for different methods and communities.” 

Basic Catalyst’s well being system companions embody UC Davis Well being, HCA Healthcare, Jefferson Well being, Intermountain  Wellspan Well being, Man’s & St Thomas NHS Basis Belief, Cincinnati Kids’s, UCI Well being, Well being First, Metro Well being, Medical College of South Carolina Well being, Hackensack Meridian Well being, Banner Well being, Common Well being Companies, and OhioHealth.