The Ohio Attorney General, Dave Yost, has given a conditional green light to the sale of Summa Health to Health Assurance Transformation LLC (HATCo), a subsidiary of General Catalyst. The approval comes with a series of enforceable commitments aimed at ensuring the nonprofit's mission is maintained and patient care in the Akron area is protected, as detailed in a report by the Ohio Attorney General's office.
In line with state law, which entrusts the AG's Office with safeguarding charitable assets, this decision follows a comprehensive review to ensure compliance with fiduciary duties, fair market value receipt, and the appropriate use of proceeds in accordance with Summa Health's charitable intent. Yost emphasized, according to the Ohio Attorney General Dave Yost, "With proper safeguards in place, this has the potential to strengthen health care in northeastern Ohio for years to come." After being notified of the proposed sale last November, the Charitable Law Section conducted this evaluation.
Providing a path forward for the transaction, Yost's office outlined ten conditions, including the requirement for an additional $15 million in cash and an equal sum in equity for the resultant nonprofit foundation. This new foundation is tasked with upholding Summa's original charitable purpose, which is to benefit residents of Summit and the surrounding counties. Also issued as part of these conditions are a commitment to detaching most of the foundation's board from Summa Health, an educational requirement for board members, and a non-sale period for the foundation's new equity share.
Adding layers of oversight, HATCo agreed to several ongoing obligations to maintain transparency and accountability. Among these, the firm will submit annual reports to the AG's office for ten years post-sale to demonstrate adherence to their commitments. It will receive cooperation terms in case of future investigations. Additionally, certain transactions raising antitrust concerns will be flagged to the AG's office over the same decade-spanning timeframe.
The approved parties, as per the Ohio Revised Code, now have 45 days to engage the public, ensuring a transparent process for finalizing the sale and for discussing the forthcoming use of the generated funds. This future public hearing will provide a platform for community input before Summa Health transitions to a for-profit purview under HATCo's administration.
