By Rédaction Africa Links 24 with Mohana Ravindranath
Published on 2024-01-17 16:06:03
Venture capital firm General Catalyst has made an agreement to acquire Ohio-based nonprofit health system Summa Health and its insurance plan and transition it to a for-profit organization, the health system’s board of directors announced Wednesday.
In October, General Catalyst revealed its plans to purchase a health system and utilize it as a testing ground for the technology developed by its portfolio companies. They discovered that health systems are generally hesitant to take risks and slow to adopt new products that could potentially improve care or streamline workflow. The venture firm, known for backing consumer companies such as Airbnb and Warby Parker, created a separate company called the Health Assurance Transformation Corporation (HATCo) to oversee the operations of the health system.
Once the deal undergoes due diligence and receives approval from regulators, both entities will collaborate in determining which technology to implement. HATCo CEO Marc Harrison, previously the CEO of Intermountain Healthcare, confirmed this to STAT late Wednesday. Summa Health CEO Cliff Deveny will continue to lead the for-profit health system.
The acquisition comes as an initiative to create a platform for testing and implementing innovative healthcare technologies that could potentially revolutionize patient care and operational efficiency. By transitioning Summa Health into a for-profit organization, General Catalyst aims to drive rapid adoption of cutting-edge technologies to enhance the overall healthcare experience.
This move demonstrates General Catalyst’s commitment to creating an environment where healthcare organizations can readily adopt new, innovative solutions developed by tech companies within its portfolio. Through strategic partnerships and effective deployment of technology, General Catalyst seeks to transform Summa Health into a leading-edge, modern healthcare provider.
Read the original article on Africa Health News
