SKOKIE, Ill. – January 29, 2018 – Summa Health is a patient-centered population health management organization based in Akron, Ohio. Summa is nationally renowned for excellence in patient care and for exceptional approaches to healthcare delivery. The system includes a network of hospitals, an insurance company, community health centers, a physician-hospital organization, and a multi-specialty physician organization. Its ACO, New Health Collaborative, has approximately 75,000 attributed lives that generate over $600 million in annual medical expenditures.
Summa’s home health and hospice business generates approximately $30 million of revenue annually and is profitable. The primary challenge for Summa was that this business line did not have the necessary scale or capabilities to optimally support the system’s population health strategies. To address this challenge, Summa sought to augment the capabilities of its home health and hospice business, while retaining appropriate control rights. The ideal partner would have experience partnering with not-for-profit health systems and provide:
- Demonstrable improvements to patient experience and outcomes
- Proven capabilities to ensure the most appropriate and cost-effective post-acute utilization
- Management expertise and regulatory oversight
- Electronic medical records (EMR) that optimize clinical operations and could also provide a level of meaningful integration with Summa’s inpatient and physician EMR
Drawing upon our extensive experience in negotiating joint ventures, Kaufman Hall supported Summa with development of the critical business elements of the transaction, including economic, governance, and exit terms.
“Andre [from Kaufman Hall] provided invaluable advice and support to the Summa team. In particular, he offered a balanced perspective and provided practical solutions that helped bridge differences while still meeting Summa’s objectives. He is a trusted advisor to Summa.” - Jeff Price, Vice President of Payer Strategy/ACO Finance
In December 2017, Summa announced the formation of a joint venture for its home health and hospice services, which will be majority (60%) owned by Summa. Alternate Solutions Health Network of Dayton will own the remaining 40% interest, and brings approximately 15 years of partnership experience with several other nonprofit hospitals in Ohio.
The new agency is scheduled to be fully operational by early February 2018.
About Kaufman Hall
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