Summa Health CEO to Step Down Following General Catalyst Acquisition

Summa Health, a major healthcare provider in Ohio, is set to undergo significant leadership changes following its recent acquisition by venture capital firm General Catalyst. Dr. Cliff Deveny, the current CEO and President of Summa Health, has announced his intention to step down from his position at the end of 2025, less than two months after the completion of the landmark $515 million acquisition deal.

Leadership Transition and Acquisition Details

Dr. Deveny communicated his departure plans to staff via email on Wednesday, explaining that he will transition to a CEO emeritus and strategic advising role starting January 1, 2026. Daryl Tol, president of the Health Assurance Transformation Company (HATCo), a spinoff of General Catalyst, will serve as interim CEO while an executive search is conducted.

The acquisition, which closed on October 1, 2025, marks a significant milestone as the first instance of a venture capital firm fully owning a health system. General Catalyst, through its HATCo subsidiary, aims to leverage this opportunity to test and implement innovative approaches to improve hospital operations without the risk of cash shortfalls.

Financial Commitments and Regulatory Scrutiny

General Catalyst's acquisition of Summa Health comes with substantial financial commitments aimed at bolstering the health system's capabilities and community impact. These include:

• $15 million allocated for community health initiatives
• $350 million earmarked for technology investments
• $200 million dedicated to strategic transformation projects

The deal faced intense scrutiny from regulators, given the transition of Summa Health from a nonprofit to a for-profit entity. Studies have shown that such transitions can lead to declines in care quality and increases in prices. To address these concerns and secure approval from Ohio regulators, General Catalyst agreed to several conditions, including:

• Raising the initial purchase price
• Appointing local community members to Summa Health's board
• Maintaining previous levels of medical services and charity care

Implications for Summa Health and the Healthcare Industry

The acquisition and subsequent leadership change come at a crucial time for Summa Health, which has struggled financially in recent years. The health system, which serves approximately 1 million patients annually through two acute care hospitals, a rehabilitation hospital, and a network of community medical centers and physician offices, also operates a health insurance arm called SummaCare.

Dr. Deveny acknowledged the potential unease among employees regarding his departure, stating in his email, "I know that change can feel unsettling. But I want you to know this decision has been made thoughtfully, collaboratively, and with Summa's long-term success in mind. It's the right decision at the right time."

As the healthcare industry watches this unprecedented venture capital ownership of a health system unfold, the success or failure of General Catalyst's approach could have far-reaching implications for future healthcare acquisitions and operational strategies.