CHP to take minority stake in eight-hospital system

March 15, 2013

Cincinnati-based Catholic Health Partners is in talks to take a minority stake in the secular, not-for-profit Summa Health System of Akron, Ohio. As Catholic Health World went to press, the organizations were not disclosing the percentage stake CHP would take or the value of the investment.

Summa, which operates eight hospitals and a network of other facilities in and around Akron, had been seeking a larger, not-for-profit partner "to strengthen its financial position" and to help it prepare for "a new era of health care," according to a release. The board and a special committee at Summa considered about 10 health care organizations before selecting CHP.

Plans call for CHP to have representation on the Summa board and for CHP to share its expertise in quality, patient safety and cost efficiency improvement with Summa. Both organizations have accountable care organizations participating in the Centers for Medicare and Medicaid Services' Medicare Shared Savings Program; both are implementing patient-centered medical homes; and both are preparing to transition to value-based reimbursements for care, according to the announcement, and so the two plan to share their experiences with these initiatives.

CHP and Summa have signed a letter of intent to partner and expect to complete negotiations around midyear.

 

Copyright © 2013 by the Catholic Health Association of the United States
For reprint permission, contact Betty Crosby or call (314) 253-3477.

Copyright © 2013 by the Catholic Health Association of the United States

For reprint permission, contact Betty Crosby or call (314) 253-3490.