VC firm makes big move into Healthcare

VC firm General Catalyst (GC) has reached an agreement to buy Summa Health.

The team at GC strategy was the buy a healthcare system that would be a reference point for understanding patients, insurers and administrators challenges and needs. This deal still has to pass regulatory approval.

The structure of the deal involves: HATCo has signed a letter of intent to acquire Summa Health. HATCo and Summa Health’s long-term journey together to reshape and improve the future of healthcare delivery.

Summa health system has 3 hospitals, less than 1,000 beds. This will be an attempt to evolve Summa into a more highly technology-enabled health system, that not only leads to better health system performance.

GC and its portfolio companies can advantage to incubate, test and commercialize technologies in the Summa Environment. This full-stack healthcare incubator, bringing together an immediate reference customer, direct access to providers and the clinical environment and immediate access to top tier VC capital.

Will GC use this a testing group for their healthcare startups, they could position Summa Health as an incubation center. This could be a hub to entrepreneurs-in-residence and incubate new companies.