General Catalyst's Summa Health acquisition: State of play
Last updated Jan. 23, 2024
General Catalysts's plan to buy and convert the Akron, Ohio-based nonprofit health system Summa Health into a for-profit marks an unprecedented shift in the venture capital space.
Driving the news: The two companies are nailing down details with intent to finalize a definitive agreement in the next several months, barring regulatory hurdles.
Catch up quick: The latest news on General Catalyst's health care system initiative.
- The acquisition could give General Catalyst an opportunity to overhaul electronic health records, a feat that Big Tech and startups have both failed at in the past. The transaction would also give General Catalyst an inside view of hospital operations.
- Experts across the health care sector speculated what reinvigorating a health system model would look like.
- General Catalyst unveiled its plan at the HLTH conference in October 2023. The new company, Health Assurance Transformation Corporation, would work with firm's 20 health system partners to leverage the technology in General Catalyst's existing profile.
Meanwhile, experts are watching to see how General Catalyst will approach these hurdles:
- Potential slowdowns to the deal include stakeholders hindering the negotiating process and pressure from federal and state regulators.
- Investor-owned hospitals have been criticized as negatively impacting patients and staff.
- Transforming a nonprofit institution into a for-profit entity will be "a lot of work."