Tennessee Company Set to Purchase DMC

**French777** · March-19-10, 05:17 AM

http://www.clickondetroit.com/news/22885498/detail.html

Looks like they are planning a major investment!

**DetroitPlanner** · March-19-10, 07:33 AM

Either that or with the new health care bill they figure that the time is right to make money off of poor people.

**kenp** · March-19-10, 07:38 AM

Originally Posted by DetroitPlanner

Either that or with the new health care bill they figure that the time is right to make money off of poor people.

You mean make money off the people that support poor people?

**DetroitPlanner** · March-19-10, 07:46 AM

Originally Posted by kenp

You mean make money off the people that support poor people?

That too, the poor and disenfranchised will be the major benefactors of a health care bill, to mee it looks like the vultures that have already created massive hospitals like Povidence in Novi, Henry Ford West Bloomfield, Gynesis in N Oakland, Beaumont II of Troy/Rochester went after the creme when there was only good insurance for the middle to high incomes now see the underserved as an enormous market to exploit.

**spiritofdetroit** · March-19-10, 09:47 AM

This would usually be frightening to me, but it seems there are many safeguards in place to protect the city. Good job by Duggan, Bing, and Ficano.

-Vanguard must keep all DMC hospitals open for at least 10 years
- New emergency room for Sinai-Grace
- New tower for Children's
- New beds and renovations at Receiving
- New lobby and upgrades at Harper
- Supposedly the largest private investment in the city's history
- Commitment to maintain charity care for 10 years
- DMC board is retained to oversee Vanguard and enforce commitments
- 10,000 jobs created [[mostly one time construction $$)
- $800 million spent in the City of Detroit

**p1acebo** · March-19-10, 11:30 AM

Originally Posted by spiritofdetroit

This would usually be frightening to me, but it seems there are many safeguards in place to protect the city. Good job by Duggan, Bing, and Ficano.

-Vanguard must keep all DMC hospitals open for at least 10 years
- New emergency room for Sinai-Grace
- New tower for Children's
- New beds and renovations at Receiving
- New lobby and upgrades at Harper
- Supposedly the largest private investment in the city's history
- Commitment to maintain charity care for 10 years
- DMC board is retained to oversee Vanguard and enforce commitments
- 10,000 jobs created [[mostly one time construction $$)
- $800 million spent in the City of Detroit

How did you acquire all those details? I don't remember seeing them in the article last night. In addition... after the 10 years do you think that they would actually plan on closing some of the hospitals? I would hope not.

**Kevgoblue** · March-19-10, 12:34 PM

Originally Posted by DetroitPlanner

Either that or with the new health care bill they figure that the time is right to make money off of poor people.

Sounds par for the course of what we've been seeing out of the corporate world lately. But provided that some type of health care bill passes and a new class of customers will be created, why would DMC sell? Why let someone else skim off all the impending profits?

**DetroitPlanner** · March-19-10, 12:57 PM

Originally Posted by Kevgoblue

Sounds par for the course of what we've been seeing out of the corporate world lately. But provided that some type of health care bill passes and a new class of customers will be created, why would DMC sell? Why let someone else skim off all the impending profits?

Lets see... If various local govts would have to sign off on this, would this not help the local govts infuse themselves with a fair return on investment at a time when they are posting record shortfalls? Local govts also have to be wondering based upon all of these shortfalls why they are tied up into something like medicine in the first place and could be looking at this as a way to rationalize what local govt does; and focus more on providing police and infrastructure.

bartock · March-19-10, 02:41 PM

Originally Posted by Kevgoblue

Sounds par for the course of what we've been seeing out of the corporate world lately. But provided that some type of health care bill passes and a new class of customers will be created, why would DMC sell? Why let someone else skim off all the impending profits?

Dunno, but this will be great for Detroit. From what I understand, the DMC central campus is an empowerment zone and so there are big tax credits also at stake here [[why city counsel approval will be needed). However, Sinai-Grace will start paying taxes as the DMC goes for-profit and eventually the rest of the DMC will also. I'll keep my feeling on the health care bill to myself, but from a purely business perspective it would be a boon to the DMC and city coffers.

**DetroitScooter** · March-19-10, 11:03 AM

Another jewel, gone!

**Hypestyles** · March-19-10, 01:48 PM

hmm... I just hope that the hospital's programs aimed at low-income familes and children are maintained.. I remember hearing about that 'high-end care' $$$ hospital built in Bloomfield Hills or somewhere that opened in the last year or so.. I hope it's not a trend for urban hospitals..

**REL** · March-19-10, 02:26 PM

I am encouraged to see the pending investment dollars for Detroit!

lilpup · March-19-10, 03:10 PM

Ten years isn't very long for an entity the size of DMC. I certainly hope the purchaser plans to stick around longer than that or else the area will be royally screwed.

**Gistok** · March-19-10, 04:07 PM

Wait a minute... aren't "for profit" hospitals banned from Michigan? I could see a for profit hospital corp. owning hospitals in Michigan... but they would have to be run as non-profit. Has that state law changed?

bartock · March-19-10, 04:25 PM

Originally Posted by Gistok

Wait a minute... aren't "for profit" hospitals banned from Michigan? I could see a for profit hospital corp. owning hospitals in Michigan... but they would have to be run as non-profit. Has that state law changed?

I did not know that all for-profit hospitals were banned from Michigan. However, non-profit hospitals in Michigan do pay taxes.

**Gistok** · March-19-10, 04:49 PM

Originally Posted by bartock

I did not know that all for-profit hospitals were banned from Michigan. However, non-profit hospitals in Michigan do pay taxes.

Bartock, "banned" may be too strong a word... but check out this website [[although it is a dated 1998 document)...

http://www.michiganinbrief.org/editi...s/issue-34.htm

The 4th paragraph down on "BACKGOUND" mentions that Michigan has no "for profit hospitals".

bartock · March-20-10, 11:26 AM

Originally Posted by Gistok

Bartock, "banned" may be too strong a word... but check out this website [[although it is a dated 1998 document)...

http://www.michiganinbrief.org/editi...s/issue-34.htm

The 4th paragraph down on "BACKGOUND" mentions that Michigan has no "for profit hospitals".

I jumped the gun on certain assumptions because I spoke with someone of historical credibility at the DMC yesterday [[as Drew and Mike would say - "oooohhhh" sarcastically) who said that Sinai Grace "will start paying taxes immediately" assuming everything goes through - today's Free Press has great information on the hows and whys of the sale.

I don't know if Duggan was ever quoted in a publication saying this, but apparently his goal when he took over was to turn the DMC into a Cleveland Clinic type of institution [[at least by reputation...I don't know how their business works).

**Lowell** · March-19-10, 05:34 PM

Who "owns" the DMC [[I thought it was a not for profit), how can it be sold and who gets the money for it?

**spiritofdetroit** · March-19-10, 06:25 PM

There are very specialized accounting and legal rules for the sale of a nonprofit, however, from the information released in this case, the "sale" proceeds go straight towards all of the DMC's outstanding bonds/debt, etc.... It will be interesting to see the specific terms - as it relates to physical assets

**RickBeall** · March-20-10, 11:29 AM

Vanguard will be looking real smart if the healthcare legislation passes this Sunday.

**Lowell** · March-20-10, 01:45 PM

Rick you nailed it. Once the big bulk of the uninsured become covered [some say it will be 35 million] there will be a pent of demand for health care. A large percentage of them are in need of important, but non-life threatening, maladies and currently cannot afford it or can't get coverage due to pre-conditions.

All medical institutions will get hit with that catch-up wave and make a lot of money. There is a price to pay for the decades of national health neglect. If you have insurance and have beein putting off some procedure, you should get it done now.

**Gistok** · March-20-10, 01:51 PM

Lowell... under that scenario wouldn't it be nice if St. John Healthcare re-opened Riverview Hospital near the MacArthur Bridge?

**Pcm** · March-20-10, 02:23 PM

An article today mentioned the designation of the DMC campus and immediate surrounding area to be designated a Renaissance Zone, meaning it tax exempt for business and residents.

What I'm interested in is if that means that residents of a Renaissance Zone are city income tax exempt, or just state income tax exempt?

bartock · March-20-10, 10:42 PM

Originally Posted by Pcm

An article today mentioned the designation of the DMC campus and immediate surrounding area to be designated a Renaissance Zone, meaning it tax exempt for business and residents.

What I'm interested in is if that means that residents of a Renaissance Zone are city income tax exempt, or just state income tax exempt?

Tax issue is interesting; City Council has to approve, and part of the reason for this happening now is to make sure it clears with a "Granholm friendly" AG [[who knows what will happen with AG this years' election). So the Zone clearly must have state and city tax ramifications to go with the federal in some way.

Duggan is part of the McNamara "family" tree...cynical part of me thinks that this is somewhat being pushed by that "family" as an "achievement" for Granholm, and obviously for Duggan. Additional cynicism is that this is a hedge on the bet that Cox ends up leading next.

RickBeal - Vanguard announced getting bank approval for funds to go towards the purchase a "major health system" last summer. DMC is much bigger than anything else they own. Detroit basically has three players for 800K people, and St. John [[the "closed" Riverview has been mentioned, though it still houses a clinic and medical offices) has certainly fringed their Detroit presence [["Grosse Pointe" on the Moross campus with the expansion that opened last year). This appears to have been ripe for the taking, and I don't think that the timing is any mistake.

Seems that some wheels have been turning since Bing took over...just saying.

DetroitDad · March-20-10, 11:04 PM

Despite all the positive things our Midtown/New Center colleges and hospitals do in the area, I wish they did not require so much parking, and I wish that the acquisition and creation of surface parking wasn't included as an "investment" in Detroit.

Just a random thought by someone who has regularly walked around the area, and watched local hospitals acquire, privatize, and build several surface parking lots in the past few months.