General Catalyst’s HATCo finalizes Summa Health acquisition

Dive Brief:

A General Catalyst spinoff has completed its $515 million acquisition of Ohio-based health system Summa Health, creating the first hospital operator owned by a venture capital firm.

Summa will transition to a for-profit entity as part of the deal, which will also give the system access to technology and partnerships through General Catalyst and capital to stabilize its operations.

The closure took about two years, given the high bar for regulatory approval for a not-for-profit system to convert into a for-profit operator. Ohio’s attorney general greenlit the transition in June.

Dive Insight:

General Catalyst launched the Health Assurance Transformation Company, or HATCo, late 2023, with the goal of innovating health system operations — including by buying a health sys