Three months after General Catalyst's announcement of its intention to acquire a health system, the venture capital firm has identified its target: Summa Health, a prominent integrated delivery system in Ohio. The companies have signed a non-binding letter of intent for the proposed acquisition, marking a significant move for Summa, a nonprofit that plans to transition to a for-profit entity, subject to challenging regulatory processes. If finalized, Summa will become part of General Catalyst's Health Assurance Transformation Corporation (HATCo), led by former Intermountain CEO Marc Harrison. The parties are actively working on finalizing the deal details and anticipate a definitive agreement in the coming months.

While financial terms remain undisclosed, Summa's board of directors noted HATCo's substantial investment. In 2022, Summa generated $1.8 billion in revenue, and General Catalyst expressed its willingness to allocate between $1 billion and $3 billion for the transaction, as stated by Harrison in a previous interview with Forbes.

General Catalyst's decision to explore a health system acquisition surprised the healthcare industry in October. Despite already having a network of over 20 health systems across 43 states and four countries that test and provide feedback on technology from its portfolio companies, General Catalyst sought greater control to innovate. The objective of acquiring Summa is to establish it as a testing ground for innovative approaches to enhance hospital operations and patient care, free from risk aversion or financial constraints, according to management.