Residents asked questions about the Summa sale. Here's what we learned.

Akron residents recently gathered at Robinson Community Learning Center to talk about their anxieties and questions regarding Summa's pending sale to HATCo, an arm of venture capital firm General Catalyst.

Willie Smith, chairman of the host group, Yours and Mine Akron United Communities Civics Organization, said he agrees with Ward 8 Councilman James Hardy's moral objection to the sale on the grounds that health care isn't a market commodity, but "a public good."

He encouraged attendees interested in trying to stop the merger to lobby the Ohio Attorney General's office through Summit County Council, Akron City Council and state representatives.

Speaking at the event, former Ward 5 Councilwoman Tara Mosley called for Summa and HATCo representatives to come to Ward 5 to talk to residents about their concerns over the sale.

She questioned whether certain types of care will be prioritized over others, because treating one condition might be more profitable than treating another. She asked: What about people who don't have insurance, and the people who work at Summa?

"These are the questions that many of us have, and I think it is incumbent upon HATCo to have these conversations with the neighborhood," Mosley said. "Our concern, again, is HATCo, and them being upfront and honest, and us not finding out at a later date that the things they said in the beginning aren't really what's going to happen."

The Beacon Journal asked Summa and General Catalyst some of the questions from the meeting. Summa spokesman Mike Bernstein provided answers, but a General Catalyst spokesperson did not respond. Some of the questions asked have been covered in the Beacon Journal's previous reporting.

Here's what we know about Summa's sale.

Will the money generated by Summa's transition to a for-profit system be kept in the community?

"Yes," Bernstein said.

Summa will continue its charity care and provide the same services it currently offers, and will focus on growing and enhancing access to care, he said.

"In fact," said Bernstein, "as part of HATCo, Summa Health will have expanded opportunities to increase investment and generate new revenue streams that strengthen our organization and drive economic growth across the region."

Additionally, Summa will begin paying taxes, providing an economic boost to the region through increased revenue being invested back into the communities Summa serves.

What happens if HATCo is unable to keep Summa afloat?

"We are confident that in HATCo, we have found a truly strategic partner that is committed to Summa Health’s model and culture," Bernstein said. "Together we have a clear understanding of our path to growth and success and this deal would represent a long-term investment in Summa Health and the Greater Akron region."

Now that Summa won't be tax exempt, will medical fees be raised to cover the money spent on taxes and to provide profit for shareholders?

Bernstein doesn't anticipate cost increases resulting directly from the sale, despite the health care industry being pressured by numerous factors influencing the cost of care — supply chain and staffing issues, for example.

"In fact," Bernstein said, "at a time when many health care organizations are focused on increasing the cost of care to meet their budgets, we are focused on making it more affordable and accessible.

"In addition, we do not expect this strategic relationship to significantly change our relationships or contracts with insurers nor increase the cost of care for patients."

If HATCo is bought by another venture capital firm, will that nullify agreements made by HATCo while it was owned by General Catalyst?

General Catalyst co-founded HATCo as an extension of its health assurance commitment, and it doesn't intend to sell HATCo, said Bernstein.

It's been organized to be a driver of permanent investments in technology, innovation and services that will bring in money in new ways and improve sustainability and local delivery of care.

"This is not an investment or relationship that we are framing in quarters to years – but rather years to decades with return expectations typical of high-quality, well-functioning health systems," Bernstein said.

What percent of HATCo is minority-owned or represented?

"HATCo is owned by General Catalyst, a venture capital firm. The General Catalyst team is comprised of individuals of diverse backgrounds, skill sets and experiences," Bernstein said.

What can the residents of Ward 5 do to get representatives from HATCo and Summa into the neighborhood to speak with them about their concerns?

Bernstein said representatives from Summa and HATCo have been meeting with employees, members of Summa's medical staff, community members and government officials to talk about the sale and answer questions.

"Regarding Ward 5 specifically, we have had the pleasure of meeting with Councilman Johnnie Hannah and look forward to continuing to keep him apprised as we move through due diligence," he said.

How will the sale effect the quality of the services provided by Summa?

"As part of HATCo, Summa Health will build on its existing strengths and capabilities while also benefiting from new opportunities and technology to expand access to affordable, quality, coordinated care to improve the patient experience and the health of populations," Bernstein said. "Ultimately, we expect the combined organizations will create a unique ecosystem that delivers on the promise of personalized care and delivers meaningful change for each person Summa Health serves."

When will the sale be finalized?

Summa and HATCo are in the due diligence period, working together to reach a deal. Bernstein didn't provide a timeline to completion.

"As part of finalizing the transaction, we also will work closely with regulators through their review process," Bernstein said. "We look forward to sharing additional details in the future."

U.S. Rep. Emilia Sykes raises questions

On March 13, U.S. Rep. Emilia Sykes, D-Akron, sent a letter to HATCo CEO Dr. Marc Harrison raising concerns about the proposed acquisition of Summa Health.

Sykes’ letter addressed the role that Summa plays in caring for maternal and infant health, as well as helping people who have trouble with behavioral and mental health and addiction. She wrote that she's asking for assurances that Summa will continue providing these and other services as a community hospital while innovating and retaining financial stability.

“We have seen systems and hospitals like Steward Health Care in Massachusetts and Lifepoint’s Wilson Medical Center in North Carolina, who have been acquired by private equity companies, suffer while property is ravaged, ownership is distributed, and communities are left to pick up the pieces,” Sykes wrote. “I, and too many others, care too much about this hospital system and community to allow this to happen.”

Sykes also sent Harrison 16 questions regarding the sale, requesting a response by March 22. Some of her questions addressed whether health care prices will be increased, how the volume or quantity of services will be affected, how HATCo will manage Summa, how much debt HATCo will assume from Summa, if local Summa leaders will stay in their current positions and what protections will be in place for collective bargaining agreements.

Bernstein said HATCo has Sykes' letter and looks forward to answering her questions during a meeting scheduled this week.

Contact reporter Derek Kreider at DKreider@Gannett.com or 330-541-9413

This article originally appeared on Akron Beacon Journal: Here answers to residents' questions about Summa sale to HATCo