Summa Health sale to HATCo can move ahead, Ohio Attorney General Dave Yost says
The sale of Summa Health to Health Assurance Transformation Company, a subsidiary of for-profit General Catalyst, has been conditionally approved by Ohio Attorney General Dave Yost, his office announced June 18.
The deal has also been approved by the Ohio Department of Insurance, Summa spokesman Mike Bernstein said in a prepared statement.
Other agencies reviewing the deal are the Federal Trade Commission and the Cayman Islands Monetary Authority, Dr. Cliff Deveny, Summa Health president and CEO, said in November.
Yost said in a prepared statement that his role in the process "is to protect Ohio's charities. 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.
'With proper safeguards in place, this has the potential to strengthen health care in northeastern Ohio for years to come.'
The Attorney General Office's Charitable Law Section, according to the release, "assessed whether the parties are in compliance with fiduciary duties, whether the nonprofit will receive full and fair market value, and whether the proceeds will be used in a manner consistent with Summa Health's original charitable purpose."
Yost's office sent a letter to the parties to the deal on June 18 approving the deal with 10 conditions. One of the conditions is that $15 million in cash and another $15 million in equity be transferred to Summa's existing nonprofit foundation to benefit people who are served by the system in Summit County and surrounding areas.
Other conditions are that a majority of board members of a new, separately governed, nonprofit community foundation have no affiliation with Summa Health and that, for three years after the deal closes, the foundation will not agree to sell its $15 million interest.
The Ohio Revised Code requires that the parties provide notice and host a public hearing within 45 days to hear comments on proposed uses of proceeds, the release said.
Bernstein said through email, "Summa Health and HATCo are partnering to satisfy these conditions, and we will continue to work closely with the Attorney General's office to ensure compliance. This is a significant milestone and follows the recent approval we received from the Ohio Department of Insurance. With these two crucial regulatory approvals now received, we look forward to continuing to focus on completing all of the remaining details necessary to finalize the transaction, including the legal work required to meet the conditions developed by the Attorney General's office and the receipt of all other regulatory approvals. We look forward to providing additional details as they become available."Patrick Williams covers growth and development for the Akron Beacon Journal. He can be reached by email at pwilliams@gannett.com or on X @pwilliamsOH. Sign up for the Beacon Journal's business and consumer newsletter, "What's The Deal?"
This article originally appeared on Akron Beacon Journal: HATCo purchase of Summa Health can proceed, Ohio AG Dave Yost says
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