Buckeye Reporter

Ohio Attorney General Dave Yost has given conditional approval for the sale of Summa Health to Health Assurance Transformation LLC (HATCo), a subsidiary of General Catalyst. The decision follows a comprehensive review by the Charitable Law Section of Yost's office.

"My role in this process is to protect Ohio’s charities," Yost stated. "After a comprehensive review by the Charitable Law Section of my office, we’re confident that the agreement includes enforceable commitments that will secure Summa’s nonprofit mission, protect patient care, and ensure continued investment in the greater Akron community."

Yost added, "With proper safeguards in place, this has the potential to strengthen health care in northeastern Ohio for years to come."

The sale involves transferring nonprofit assets from Summa Health to a for-profit entity. As such, the Attorney General's Office is responsible for approving or denying the sale under Ohio law. The office was notified of the proposed sale in November 2024 and conducted an assessment to ensure compliance with fiduciary duties and fair market value considerations.

Yost's office has approved the sale on ten conditions. These include transferring an additional $15 million in cash and another $15 million in equity to a surviving nonprofit foundation serving Summit and surrounding counties.

Additional conditions stipulate that:

- The charitable purpose of the receiving foundation will align with Summa’s original purpose.

- A majority of board members at the foundation will have no affiliation with Summa Health.

- Board members must complete training at the Attorney General’s Charitable University within three months post-transaction.

- For three years after closing, the foundation will not sell its $15 million equity interest.

- The Attorney General retains jurisdiction for ten years to enforce HATCo’s obligations.

- HATCo agrees to cooperate with any future investigations by the Attorney General.

- HATCo will provide annual reports reflecting compliance with post-closing obligations for ten years.

- HATCo will notify about transactions potentially raising antitrust concerns over ten years.

Following approval, per Ohio Revised Code requirements, parties must give notice and hold a public hearing within 45 days to gather comments on using proceeds.