A group of Ohio residents is calling for a state attorney general investigation into General Catalyst's Health Assurance Transformation Corp.'s plans to purchase Summa Health.
Two members of the group, Summa Is Not For Sale, sent a letter to Ohio Attorney General Dave Yost (R) Friday expressing concerns about the proposed transaction, which would convert nonprofit Summa to a for-profit entity.
Related: General Catalyst’s HATCo to buy Summa Health for $485M
The letter asks Yost's office to investigate whether the deal would cause impermissible private inurement — in which a nonprofit's net earnings unduly benefit private parties — and to require an independent valuation of Summa Health's assets and community impact study before any sale or restructuring deal moves forward.
The Ohio Attorney General's Office, Summa Health, Summa Is Not For Sale and General Catalyst did not immediately respond to requests for comment.
HATCo signed a definitive agreement in November to acquire Akron, Ohio-based Summa Health for $485 million. Summa Health CEO Dr. Cliff Deveny said at the time the funds from the sale would go toward paying off the system's debt. HATCo first expressed its intent to acquire the system in January 2024.
Summa Is Not For Sale said in the letter the purchase price was too low and not an accurate assessment of Summa Health's actual value based on publicly available financial filings.
