Copyright cleveland.com
CLEVELAND, Ohio — Wednesday’s announcement that Summa Health CEO Dr. Cliff Deveny is stepping down as the health system’s chief executive is the latest chapter in a story that began in 2024 with the announcement that Summa was being sold. Summa’s $515 million sale to Health Assurance Transformation Co., or HATCo., took it from non-profit to the only for-profit hospital in Northeast Ohio. Deveny will stay on as a strategic adviser and CEO emeritus through 2026, helping guide the transition to new ownership under HATCo., and a new CEO. HATCo president Daryl Tol will serve as acting president and CEO until a permanent leader is named. The search for Deveny’s successor is expected to take six to nine months. Here’s a brief timeline of Summa’s sale: January 2024: Summa Health, an independent hospital since its creation in 1989, announces it will be acquired by a for-profit company that aims to put technology at the forefront of healthcare prevention. The price of the deal was not disclosed at the time. Summa will become a wholly owned subsidiary of Health Assurance Transformation Corp., a new business venture owned by venture capital firm General Catalyst. As such, the health system may become a testing ground for healthcare innovations designed to decrease costs and increase health equity. Deveny says the infusion of cash will help Summa concentrate on medical care by retiring $800 million in debt. November: HATCo says it will pay $485 million (later revised to $515 million) to acquire Summa. The remaining cash, after closing adjustments, will fund a new, separately governed community foundation to benefit community health in Greater Akron. HATCo. also commits 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. March 2024: An Akron grassroots organization challenges the proposed sale stating that the price tag is less than the health system’s true value. The group, called Summa is Not For Sale, calls on Ohio Attorney General David Yost, who is reviewing the sale, to impose a six-month moratorium on any state decisions on Summa’s conversion from nonprofit to for-profit, to allow time for public hearings. June: The Ohio Attorney General’s office approves the $515 million sale with the caveat that cash and equity is given to a new nonprofit foundation to benefit the community. September: Summa stops scheduling appointments for people with out-of-network and non-contracted insurance plans, effective Monday, Sept. 1. The change protects the health system from spending resources trying to collect payment from out-of-network health insurers, while also protecting out-of-network patients from high hospital bills. Oct. 1: The $515 million sale of Akron-based Summa to HATCo. is completed. Oct. 29: Deveny announces he will step down as CEO at the end of the year, becoming a strategic advisor and CEO emeritus as HATCo president Daryl Tol assumes interim leadership during the search for a permanent successor. Deveny said in an email to staff that it was time for the organization’s “next chapter,” and that HATCo and Summa’s board decided this was the right time to begin the transition. “An important component of any enduring organization’s ability to withstand the test of time is thoughtful succession planning,” Deveny wrote. Tol said the leadership change is part of a natural succession process that began soon after the sale closed. “We knew for sure that Cliff didn’t have intention to be here another eight years, nor should he in an environment where the average health system CEO in America has a tenure of less than three years,” Tol said. He added that Deveny’s continued involvement would help ensure stability and continuity. Critics of the sale, including members of the Summa Is Not For Sale coalition, expressed concern that a for-profit model would put shareholders ahead of patients and staff. “The HATCo executive installed to (temporarily) lead Summa will be compelled to generate high returns for the firm’s wealthy shareholders, inevitably prioritizing profit through increased workloads for staff and higher prices for patients,” coalition member Matthew Charlebois said in a statement. Tol dismissed those concerns, calling the transition “a natural one” and rejecting claims that the move signaled negative intentions. “We’re building for the future, and Cliff’s a part of that,” he said. Summa said Deveny will assist with the search for a long-term president and CEO and help onboard the new leader. All of Summa’s roughly 8,500 employees, including Deveny and his leadership team, transitioned to HATCo’s for-profit system earlier this month. Deveny, 65, will work to the end of his current three-year contract, which runs until the end of 2025, then take on his new roles, he said.
