Akron councilman envisions pathway for Summa Health to avoid venture capital acquisition
One of Akron's newest City Council members is uneasy about a venture capital firm's plan to acquire Summa Health.
At the end of Monday's council meeting, Ward 8 Councilman James Hardy publicly called for Summa to pause the sale of the health system to Health Assurance Transformation Corp., a health care company that launched in October and is owned by one of America's largest venture capital firms, General Catalyst.
"The community has not been consulted at all," said Hardy, "and we stand to gain or lose the most at the outcome of this proposal. At the very least, Summa owes greater Akron a transparent process where concerns and questions of the general public are asked and answered."
Hardy, who has a master’s degree in public health with a concentration in health policy and management, returned to the Akron government sector following his election in November to the council seat previously held by new Mayor Shammas Malik. Hardy had served in former Mayor Dan Horrigan's administration, first as his chief of staff, then as deputy mayor for integrated development. He left to take a job at the Robert Woods Johnson Foundation in 2021.
Following Hardy's speech, at-large Councilwoman Linda Omobien said Summa's Chief Operating Officer Ben Sutton and board member Tracy Carter planned to attend the council's Health and Social Services Committee meeting at 2:30 p.m. Monday.
"Maybe this will be an opportunity to start that town hall meeting or that discussion with the public," Omobien said.
Chief of Strategy Nanette Pitt, speaking on Malik's behalf, said the mayor wishes to "be a conversation partner" through the process.
Stephanie Marsh, Akron's communications director, said via email that Malik has been in contact with Summa leadership and members of its board to talk about the sale.
Marsh wrote that HATCo also has expressed interest in meeting with Malik; she said the mayor's priority is to "face any new changes head on — prioritizing patient health, community well-being and support for Summa’s amazing employees."
A Summa spokesperson did not immediately respond to a request for comments.
'Moral' objection to venture capital path
Hardy told City Council he opposes Summa's sale based "on the moral conviction that health care is a public good and not a market commodity."
He said he objects to Summa, its staff and its patients being used as "guinea pigs" for a model developed by venture capitalists.
"Human beings are not a means to an end," he said. "Human beings are ends in and of themselves. Private equity ownership of health care is the most naked method today of turning health care into a market commodity."
Hardy said instead of profit-driven health care that's beholden to private investors, "we can and should consider alternatives or at least advocate for alternatives, such as converting Summa to a county-owned system like Metro Health in Cuyahoga County."
Citing his parents' ordeals navigating medical crises, Hardy said he distrusts the idea of venture capital ownership of hospitals when patients are struggle to keep up with costs for care even with good insurance plans. He said he was a teenager when his father died after a bladder cancer battle that wiped out the family's savings. And his mother died at age 72 after bouts with bladder and lung cancer.
"Every one of us in this room holds similar stories of how the health care system has negatively impacted our loved ones — and we also hold memories of heroic doctors, nurses and caregivers who save lives, ease pain and made sure we received compassion in our scariest moments," Hardy said.
He asked how it's possible that the health care system can be "heroically compassionate and financially predatory."
"There's enough doubt in our minds about the market approach to make us regulate health care, work to care for the uninsured and allow for nonprofit and community based models of care to exist," he said.
"I encourage all of us to ask ourselves how comfortable we are in trusting the health care of our grandchildren to venture capitalists."
Contact reporter Derek Kreider at DKreider@Gannett.com or 330-541-9413
This article originally appeared on Akron Beacon Journal: Akron City Councilman James Hardy seeks to stop Summa sale to HATCo
