AKRON, Ohio — On Wednesday, Ohio Attorney General Dave Yost conditionally approved the sale of the nonprofit Summa Health system to the venture company Health Assurance Transformation Corp. (HATCo) for $485 million, establishing a series of strict conditions aimed at protecting the interests of the Akron community. Among these are the creation of a new nonprofit foundation with a $30 million capital, consisting of $15 million in cash and $15 million in shares, to support local health initiatives. However, while some welcome the deal as a lifesaving step for the financially burdened system, others fear that privatization could threaten the quality of medical services in the region known as the “Rubber Capital of the World.”
Yost, whose role as state watchdog over charitable organizations involves protecting public assets, stated that the agreement “will secure Summa’s nonprofit mission, safeguard patient care, and ensure further investments in Akron.” The conditions set by his office include requiring that most members of the new foundation’s board be independent of Summa, as well as a ban on selling shares of the fund valued at $15 million for at least three years. These steps, Yost said, are intended to ensure transparency and long-term benefits for the community.
The sale of Summa Health, announced in 2024, is part of a broader trend in American healthcare where nonprofit hospitals are increasingly absorbed by private investors. According to a 2023 national study, such deals often come with increased risks to patient safety, including rising incidents of falls and infections at privatized facilities. This alarming context has led local activists, notably the coalition Summa is Not For Sale, to question the fairness of the deal. “The true value of Summa exceeds $800 million,” asserts Jeff Barge, a coalition member, citing appraisals that consider assets and the system’s reputation. However, he acknowledged that Yost’s conditions, especially maintaining a 3% community stake in Summa’s capital, are a step in the right direction.
For Summa Health, which has accumulated $850 million in debt, the sale has become a matter of survival. According to Michael Bernstein, Director of Corporate Communications, the deal will enable the organization to pay off debts using $485 million from HATCo and available company funds. Furthermore, Health Assurance committed to investing $350 million in technology and growth during the first five years, and an additional $200 million in strategic innovations over seven years. “This is a significant milestone,” Bernstein said. “We aim to complete the deal while complying with all regulatory requirements.”
HATCo, owned by the venture firm General Catalyst, positions itself as an innovator transforming healthcare through technology and market solutions. However, skeptics—including local unions and community groups—fear that profit motives could undermine access to and quality of medical services. The example of two private hospitals in neighboring Warren, which closed in March due to the bankruptcy of their previous owner Steward Health Care, intensifies these concerns. “We don’t want Akron to be the next Warren,” says Barge, emphasizing the need for careful oversight of the deal’s implementation.
Yost’s decision marked the second major regulatory approval after the Ohio Department of Insurance’s consent. The next step will be a 45-day public hearing during which the community can express concerns about the distribution of proceeds. Insider sources indicate that Summa and HATCo are actively preparing for these hearings, hoping to reassure critics by demonstrating their plans for innovation and community investment. However, sources close to negotiations note that some Summa board members privately expressed doubts about HATCo’s long-term commitments, fearing that the venture model could lead to cost-cutting on staff and services.
For Akron, a city of 190,000 struggling with economic challenges following the decline of the tire industry, the fate of Summa Health is more than just healthcare—it’s about social stability. The system, which serves thousands of patients in the region, is one of the city’s largest employers. “Summa is not just a hospital, it’s the heart of our community,” says Marian Thompson, a nurse with 20 years of experience who has joined protests against privatization.
While Yost assures that the deal will strengthen healthcare in northeastern Ohio, many Akron residents remain cautious. Will the new foundation be able to use the $30 million for real change, or will it become merely a symbolic gesture in a process that hands control of local medicine to venture investors? The answer to this question will determine not only the future of Summa Health but also the community’s trust in those who promise to protect its interests.
