venture capital company common catalyst Announces recently formed business venture Health Assurance Transformation Corporation (HATCo) plans to acquire Summa Health, an Ohio-based nonprofit health system with more than 30 locations in the Akron and Canton areas.
Founded in 1989, Summa Health is an integrated delivery system that has been in operation for more than 130 years. It was formed by the merger of Akron City Hospital and St. Thomas Hospital.
This includes community-based health centers, hospitals, multidisciplinary group practices, entrepreneurial organizations, multiple foundations, research and medical education, and a health plan called SummaCare.
Summa announced its 2023 financial results, reporting an operating loss of $37 million for the first nine months, about $16 million less than the year-ago report. Total revenue for the first nine months was $1.39 billion, an increase of 4.4% year over year. Additionally, expenses increased 6% year over year to $1.42 billion.
“HATCo and Summa Health's leadership teams have a clear understanding of Summa Health's future path to growth, vitality, service, and continued success. „Not only do we deliver short-term benefits to patients who care, but we also enable sustainable, long-term transformation through a true shift to value-based care and access to new revenue streams, resources, innovation, and technology.“ General Catalyst said in a statement.
The venture firm emphasized that this news is not just another „private equity“ deal, but is focused on introducing innovation. The company aims to build a technology-enabled healthcare delivery platform at scale that can be deployed in a variety of medical settings, and its efforts are long-term, not a „temporary turnaround.“
„This is not an isolated transaction, but part of a broader engagement strategy with our broader healthcare ecosystem, innovators and system partners who collaborate and share best practices, and Summa Health's progress will continue to grow. It could be a harbinger of innovation for the world of „industry,“ the company wrote.
The transaction requires regulatory approval, and if approved, the nonprofit health system will become a for-profit subsidiary of HATCo.
bigger trends
During October, Announcement of general catalyst HATCo's CEO told the audience at HLTH 2023 that the company „needs a proof of concept for this bold, fundamental change in the way healthcare is done in the U.S. and the rest of the world, and it's the only way we can do it.“ ”, underscoring the company's intention to transform healthcare delivery. It's about having our own system. ”
General Catalyst Managing Director Holly Maloney recently said: I sat down with Mobi Health News We then discussed the VC firm's intentions to purchase the healthcare system.
“Transformation efforts have been particularly noteworthy since 2023.While there is a perception that times are getting tough in the industry, with often tight budgets and an uncertain funding environment, „This funding is there to support innovation over the long term,“ Maloney said.
“We are really excited about what we will learn, the potential of HATCo, and the great leadership of Mark Harrison and the team under him. I think 2024 will be a really exciting year. ”