Summit County's largest employer, Summa Health, which has been looking for either a partner or a buyer since before the pandemic; announced a $485 million dollar deal with a for-profit venture capital firm today.

Health Assurance Transformation Company (HATco), which is part of General Catalyst, announced in January that they were interested in buying Summa, which has 8,000 employees in the Akron area, and the two organizations have been working out the details since then, though it is still subject to regulatory review.

In a press released posted today, Summa officials explained why they entered into the agreement:

"As part of HATCo, Summa Health will be better positioned to build upon our existing strengths and capabilities while also benefiting from new opportunities and technology. Our goals are to expand access to care and improve the experience for our patients, providers and staff,” said Cliff Deveny, M.D., Summa Health President and CEO. “This is only the beginning of our long-term journey together.”

The Definitive Agreement outlines the proposed terms and conditions of HATCo’s acquisition of Summa Health and reflects a significant investment in the health system. The purchase price of $485 million, when added to Summa Health’s current cash, will enable the health system to eliminate $850 million in existing debt. The remaining cash, after closing adjustments, will fund a new, separately governed community foundation that will support focused investment to benefit community health in the Greater Akron region. 

HATCo has also committed to $350 million in capital funding within the first five years to ensure necessary resources are available for routine purposes, and investment in technologies that support growth. Additionally, HATCo has committed $200 million intended for strategic and transformative investments and to drive innovation over the first seven years.

“Our focus is on creating new and expanded opportunities for Summa Health, the communities it serves, and its talented workforce,” said Marc Harrison, M.D., co-founder and CEO of HATCo. “I am proud of the strong collaboration our teams have demonstrated over the past several months, and we look forward to continuing to work together to develop a plan that optimizes operational stability, while positioning Summa Health to drive meaningful transformation in the years ahead." 

To read the full release; click here.

In response to the news, Akron Mayor Shammas Malik had this reaction. Listen now: