Venture capital firm General Catalyst to buy Ohio health system Summa Health

[Brajeshwar]

https://www.axios.com/2024/01/17/summa-health-ohio-general-catalyst?stream=top

[toomuchtodo]

Related: https://news.ycombinator.com/item?id=39036526 ("HN: Hospitals owned by private equity are harming patients, reports find")

https://arstechnica.com/health/2024/01/hospitals-slash-staff...

[adamredwoods → toomuchtodo]

Not only is this now driven by private equity decisions, but the health care system WAS non-profit. In my opinion, profit-driven decisions result in "enshitification" to the consumer.

Cancer patients get out now. :(

[pphysch]

What exactly is "venture" about taking over a large endemic company and milking it for profit? Isn't that just the standard PE playbook?

[cj → pphysch]

A lot of large VC funds are beginning to boost LP returns using the PE playbook.

Battery Ventures is another well known firm that has been buying up and consolidating companies in various verticals within SaaS and other markets.

The line between PE and VC has become a lot blurrier over the past couple of years.

[dayofthedaleks → pphysch]

I'd guess they've earmarked a bunch of additional 'venture' capital so Summa can eat other Ohio hospital systems. Big market opening up around New Albany, maybe build some facilities down there.

[boeingUH60]

Just when you think private companies are already sucking enough the last dime out of healthcare…

Anyways, the non-profit hospitals already engage in price gouging, the for-profit companies might as well take part.

[noodlesUK]

How and why is a non-profit being sold to a VC firm? Why did the non-profit agree to this purchase?

[nextworddev → noodlesUK]

probably so they could deploy their healthcare portfolio's company tech