Wednesday, 17 January 2024 12:35

Akron Mayor: Partnership with Summa Health Will "Remain Strong" Despite Pending Acquisition Featured

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On word that Summa Health is in the process of being acquired by General Catalyst’s Health Assurance Transformation Corporation (HATco), Akron Mayor Shammis Malik released this statement today:

“The City of Akron’s partnership with Summa will remain strong. My family, like much of our community, has depended on Summa for healthcare in difficult moments. My hope and belief is today’s announcement will ensure Akron families can continue to rely on Summa for excellent care for decades to come.

Change has been a constant in healthcare across the country and here at home. 35 years ago, Akron City Hospital and St. Thomas Hospital merged to form Summa, and now the system is looking to transform again. As a community, we will face these new changes head on, prioritizing patient health, community wellbeing, and support for Summa’s amazing employees.

I want to thank Dr. Cliff Deveny, his leadership team, and every Summa employee for their service to the community, as well as the Summa Board. We look forward to working with the Health Assurance Transformation Corporation (HATCo) on the future of healthcare in Akron.”

Summa Health, meanwhile, explained the changes ahead, in the following way on their website:

"Akron, Ohio-based Summa Health and General Catalyst’s Health Assurance Transformation Corporation (HATCo) announced today that the two organizations have signed a non-binding Letter of Intent outlining HATCo’s planned acquisition of Summa Health. This strategic alignment marks the beginning of a long-term, transformational journey to create a new, more proactive, affordable and equitable system of community-based, lifelong healthcare.

HATCo is eager to work with Summa Health to advance healthcare innovation based on the strength of Summa’s large, integrated healthcare delivery system and its proven track record in leading meaningful changes to care delivery. As part of HATCo, Summa Health will build upon its existing strengths and capabilities and create new opportunities to leverage innovative technology that will improve the health of communities across the Greater Akron region.

“This new structure will better serve our communities clinically, economically and socially. With HATCo, Summa Health will be able to increase local investment and introduce new resources that allow us to expand access to affordable, quality, coordinated care,” said Cliff Deveny, M.D., Summa Health President and CEO. “We’re excited about new opportunities to enhance the patient and provider experience, strengthen our recruitment pipeline, build upon our commitment to medical education and training, and expand the growth of SummaCare to advance health equity and population health across the communities we serve.”

Summa Health’s leadership team will work closely with HATCo, including Dr. Marc Harrison, HATCo CEO and Hemant Taneja, General Catalyst CEO, to leverage their collaborative, complementary expertise in healthcare and health systems to plan the transformation journey. HATCo’s investment into Summa Health will drive not only near-term benefit to the organization and the patients it serves but also sustainable, long-term transformation through a true shift to value-based care.

“HATCo is grounded in the belief that by making health systems more profitable, vibrant and innovative, they will be better equipped to serve everyone in their communities with greater impact. We are thrilled to partner with Summa Health to bring this vision to life,” said Marc Harrison, M.D., co-founder and CEO of HATCo. “The current national healthcare system is fragmented and creates barriers to care and wellness. In partnership with Summa, we intend to prove that a model that’s better for patients can also be good for business and create a blueprint for other systems and communities.”

Within the new structure, Summa Health will become a for-profit organization and HATCo and Summa Health will maintain the health system’s commitment to charity care. In addition, as a result of the transaction, a community foundation will be created that advances Summa’s mission through increased, focused investment into social determinants of health that benefits the entire Greater Akron area. The health system delivered $210.1 million in community benefit to area residents in 2022 and is deeply committed to continuing this long-standing work to improve the health of its region.

“Our shared vision is to create a replicable healthcare model that marks a true and meaningful shift from a ‘sick care’ system to a resilient, proactive model of health assurance,” said Hemant Taneja, CEO of General Catalyst, and founder and chairman of HATCo. “By doing so, we will help people stay well, bend the cost curve through innovation and make quality care more affordable and accessible. I couldn’t be more excited to collaborate and execute on that vision with Summa Health and HATCo. We aim to improve the health and wellbeing of the greater Akron community, create a standard for the health system of the future, and inspire communities across America to adopt this vision.”

“This alliance provides Summa Health with comprehensive opportunities to grow our organization in ways we can’t achieve alone. Many other health systems are navigating the very same challenges we must transcend,” said George Strickler, Chair of Summa Health’s Board of Directors. “We are excited about this opportunity to work hand-in-hand with HATCo to increase investment in Summa Health and our communities and drive meaningful, transformative change that will benefit the entire healthcare industry.”

“From a nursing perspective, I‘m very excited about the potential to shape the future of nursing care through this relationship,” added Penelope Gorsuch, DNP, RN, NEA-BC-FACHE, Summa Health Senior Vice President and Chief Nursing Officer. “As we look to continue to extend our work on evidenced-based practices across Summa and beyond, our shared vision with HATCo provides us with unique opportunities to enhance and grow our focus on innovative nursing models.”

HATCo and Summa Health are now entering a due diligence period during which they will work together to further evaluate and define details of the proposed relationship, while carefully reviewing information from both organizations before finalizing a definitive agreement. Summa Health will continue to provide the same essential services, current and planned commitments will proceed uninterrupted, and the organization will continue to invest in Ohio employees and initiatives.

The two organizations anticipate finalizing a definitive agreement in the next several months. Following receipt of required regulatory approvals and transaction closing, Summa Health will become a wholly owned subsidiary of HATCo and continue its focus on growth and enhanced access to care.

To learn more about this strategic partnership, please visit SummaHealth.org/Future."

 

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