Ohio Attorney General Dave Yost has conditionally approved the sale of Summa Health to Health Assurance Transformation Company (HATCo), a subsidiary of venture capital firm General Catalyst, mandating 10 additional requirements to safeguard community interests.
Why it matters: The sale involves the transfer of nonprofit assets from Summa Health to a for-profit entity, raising concerns about prioritizing profits over patient care and community benefits.
The details:
- The sale price will increase by $15 million, raising it to $500 million to reflect fair market value.
- HATCo will provide a $15 million part ownership stake to a new community foundation established by the sale.
- HATCo is required to file annual reports with the Attorney General’s Office for the next 10 years, ensuring transparency and accountability.
- The Attorney General will have continuing jurisdiction to enforce these obligations for a decade.
Summa and HATCo leaders have assured the community that their mission will remain focused on providing charity care, training future physicians, and offering essential services such as behavioral health, obstetrics, trauma, and emergency care.
What they’re saying:
- “With proper safeguards in place, this has the potential to strengthen health care in northeastern Ohio for years to come,” said Attorney General Dave Yost.
- Summa President and CEO Dr. Cliff Deveny emphasized that this sale is vital to preserving Summa’s identity and operations, warning that not proceeding could lead to Summa being absorbed by another health system.
- Jeff Barge, a member of the Summa Is Not for Sale coalition, said the attorney general’s conditions improve upon the deal’s transparency and community benefits, although the coalition believes the sale price is still short of Summa’s true value.
What’s next: The parties must provide public notice and conduct a hearing within 45 days to gather community input on the use of the proceeds. Summa and General Catalyst will work to satisfy the attorney general’s conditions and obtain all remaining regulatory approvals to finalize the transaction.