CLEVELAND, Ohio — The $485 million sale of Akron-based Summa Health to for-profit Health Assurance Transformation Co. (HATCo) has been completed, the two organizations announced Wednesday.
The sale makes Summa the only for-profit major hospital in Northeast Ohio. The health system is now a wholly owned subsidiary of Health Assurance Transformation, a new business venture owned by venture capital firm General Catalyst.
The purchase price, when added to Summa’s current cash, will enable the health system to eliminate $850 million in existing debt, the companies said after the sale was first announced in early 2024.
Health Assurance Transformation has also committed to $350 million in capital funding within the first five years for investment in technologies that support growth, as well as $200 million intended for strategic and transformative investments and to drive innovation over the first seven years.
“Today is the culmination of months of collaboration between our organizations and marks the start of a new chapter for Summa Health and those we serve,” said Summa CEO Dr. Cliff Deveny, in a statement. “With HATCo, we can preserve our community roots, invest in our team, and take bold steps to modernize and expand access to ensure Summa remains strong for decades to come.”
Summa’s acquisition will help the healthcare system concentrate on medical care by retiring $800 million in debt, Deveny said when the sale was first announced in 2024.
The sale ensures that Summa is strong, said Health Assurance Transformation president Daryl Tol.
“For our teams, that means new technology, resources and support to drive transformation enablement while addressing system fragmentation to make daily work easier,” Tol said. “For patients, it means consistent, reliable care today and a more connected, seamless experience tomorrow as we transform together.”
In June, the Ohio Attorney General’s office “conditionally approved” the sale, with the caveat that cash and equity would be given to a new nonprofit foundation to benefit the community.
The Trailhead Community Health Foundation of Greater Akron will be governed separately from both Summa Health and Health Assurance Transformation, and will invest in expanding access to healthcare and driving long-term improvements across our community.
Summa and Health Assurance Transformation did not say how much money the foundation will receive in Wednesday’s announcement.
Summa employs more than 8,500 employees across the system and SummaCare.
The organizations already have begun implementing a transformation plan to support patients and staff, the organizations said.
This story will be updated.