Transforming the Future of Healthcare
To our valued community members,
As you may be aware, Summa Health has been working with HATCo to thoughtfully evaluate and define a proposed transaction. We’re pleased to share we have signed a Definitive Agreement outlining the proposed terms and conditions of HATCo’s acquisition of Summa Health. The transaction is subject to regulatory review and approval.
Our time together has only further cemented our trust and confidence in HATCo’s commitment to our organization, culture and the Greater Akron region. They have committed to a significant investment that will provide the resources we need to build upon our existing strengths and capabilities; we’ll also benefit from new opportunities and technology that will expand access to care and improve patient, provider and staff experiences.
This is a true investment in our future. We have agreed to a purchase price of $500 million, which, 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.
The new community foundation will allow us to deliver a broader impact than we can achieve today. The recently announced Trailhead Community Health Foundation of Greater Akron will be an independent nonprofit dedicated to improving community health across the Greater Akron area through strategic grants, collaborative partnerships and targeted initiatives. This new community foundation is being created through a process that is independent from the transaction and will be governed separately from HATCo and the health system following the closing.
The Trailhead Foundation will begin operations after the transaction closes, expected in late 2025.
Above all: We remain deeply committed to investing in the communities we serve. Summa Health will maintain its charity care policy, community benefit, and essential services it currently offers while focusing on sustainable growth and enhanced access to care for people across the region.
As part of HATCo, we will be able to invest in and grow our team in ways we could not achieve as an independent organization. And while the structure and model of Summa Health will shift when we become part of HATCo, our priorities will not change and our providers, employees and leadership team will transition to the new entity.
We are submitting applications related to the Definitive Agreement to the Ohio Attorney General, the Ohio Department of Insurance, the Federal Trade Commission and other regulatory bodies for review and approval. This is an important step in the process, and we expect reviews to take time given the unique nature of this transaction.
Sincerely,
George Strickler, Chair, Summa Health Board of Directors
Cliff Deveny, MD, President and CEO, Summa Health
Securing Our Future and the Health of Our Communities
Summa Health/HATCo Journey
HATCo's Commitment is Significant — and Long Term
Summa Health and General Catalyst’s HATCo sign Definitive Agreement to advance vision for future of healthcare delivery
Summa Health and HATCo have signed a Definitive Agreement outlining a proposed transaction focused on stabilizing the health system and creating a more proactive, affordable and accessible system of community-based, lifelong healthcare. Read the press releases:
About Summa Health
Summa Health is an integrated healthcare delivery system that provides coordinated, value-based care across the continuum for the people and populations we serve.
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Ben Sutton, Chief Operating Officer for Summa Health
