Issue link: https://beckershealthcare.uberflip.com/i/1516121
21 TRANSACTIONS General Catalyst led $95.5M investment in a physician group, plans health system acquisition By Laura Dyrda G eneral Catalyst led a $95.5 million funding round for a Texas-based physician clinic chain in early January, and a week later the investment firm announced plans to acquire Akron, Ohio- based Summa Health. General Catalyst has expanded in the healthcare space over the last few years, and launched a division in 2023 focused on healthcare providers called Health Assurance Transformation Corp., which is led by former Intermountain Health CEO Marc Harrison, MD. e company's investment in the physician group, Harbor Health, will help it continue to grow. In 2023, Harbor Health grew from two to eight locations. General Catalyst was interested in Harbor Health for many reasons, including its risk contracts with Blue Cross Blue Shield of Texas and its ACO REACH product with CMS. "ere's a strong appetite for a fresh approach to healthcare delivery among employers that prioritizes outcomes, enhances consumer engagement and is proactive by design," said Chris Bischoff, managing director of General Catalyst. "We believe Harbor Health is providing ease of access to the largest covered population in the U.S. and bringing much-needed change as the company seeks to transform value-based care for the commercial sector. is aligns with our Health Assurance thesis." HATCo then announced plans to acquire Summa Health, which includes acute care as well as outpatient and home care services. Pending regulatory approval, Summa will become a wholly owned subsidiary of HATCo and establish a community foundation to advance the health system's mission. e foundation will also invest in social determinants of health programs. If the investment goes through, General Catalyst will retire $800 million of Summa Health's debt. e company doesn't anticipate layoffs at Summa Health, and currently expects the leadership to stay intact. With the acquisition, Summa would transition from a nonprofit to a for-profit health system. "By making it for-profit and perhaps tolerating financial losses on the health system side to realize larger potential gains on the venture side is most assuredly creative. Perhaps not too dissimilar from other health systems who leverage margin across providers, hospitals and a health plan by tolerating losses in one for gains in another," Richard Zane, MD, chief innovation officer of Aurora, Colo.-based UCHealth, told Becker's. "Hoping that patient care remains the true north, this could be a remarkable story." n Nvision expands with Texas joint venture By Paige Haeffele A liso Viejo, Calif.-based Nvision Eye Centers has partnered with San Antonio-based ophthalmology group Parkhurst NuVision. Parkhurst NuVision has practice locations and an ASC in San Antonio, according to a Jan. 17 news release from Nvision. It also has locations in New Braunfels, Texas. The partnership was formed to share resources and expand both groups' footprint in Texas. Nvision has more than 100 practices, ASCs and joint ventures across Arizona, California, Oregon, Texas and Utah. n costly alternative than hospital-based surgical care will contribute to their growth into the future and lead to more innovation in an industry that is trying to decrease costs without adversely affecting quality of care. Eugenio Hernandez, MD. Senior Vice President of Clinical Affairs for Gastro Health (Miami): Most economists do not believe there will be a significant economic downturn in 2024. We share that viewpoint and do not think ambulatory growth will be substantially impacted this year. If anything, a potential economic downturn may soen the labor market and could drive more people back into the workforce. Shannon Simmons. Program Manager of Ambulatory Infection Prevention & Control for Christus Health (Dallas): Historically, economic crisis has had a major impact on the use of healthcare services due to the documented relationship between employment, healthcare access and health outcomes. However, with the escalation and expansion of ambulatory healthcare facilities patients are choosing outpatient medical care for lower costs, greater accessibility and perceived better patient experiences. Ambulatory healthcare services have been speculated to grow exponentially this year as costs to both patients and payers can be significantly less in this segment of healthcare. For example, ASCs oen have lower operating costs than their hospital counterparts primarily due to the reduced expenses associated with fewer staff, less supplies and smaller facilities. is economic opportunity has enticed healthcare systems, who have been known to primarily operate hospitals, to procure partnerships in the ambulatory healthcare space to capitalize on this shi in healthcare services. Healthcare systems buying into the ambulatory healthcare space may contribute to the aggressive growth of ambulatory healthcare facilities in the coming years, as these systems strategize to combat the projected economic downturn. n