Tennessee Company Set to Purchase DMC

[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

[p1acebo]

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.

[daddeeo]

Either that or selling them. Remember they are a for profit hospital.

[RO_Resident]

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.

Those details are in the Vanguard/DMC press release:
http://www.marketwire.com/press-rele...nt-1134561.htm

The Letter of Intent [[LOI) has six major provisions:

1) Vanguard will acquire all of the DMC System's assets [[other than donor
restricted assets) for a purchase price that includes approximately
$417 million to retire all outstanding DMC bonds and other long-term
indebtedness and also requires Vanguard to assume all DMC liabilities
[[other than such bonds and long-term indebtedness).
2) DMC will be owned and operated by a Vanguard subsidiary known as VHS
Michigan. VHS Michigan will establish a regional advisory board to
oversee the conduct of the DMC hospitals, consisting of 4 members
appointed by Vanguard and 3 appointed by the DMC Board. The hospitals
will continue to operate under the DMC brand and their historic names.
3) Vanguard has made an extensive commitment to support the historic
safety net mission of DMC, including a 10 year commitment to keep all
hospitals open and to maintain DMC's charity care policy.
4) Vanguard has agreed to spend $850 million in capital investment in DMC
over the next 5 years, more than $800 million in the City of Detroit.
$500 million will go for a specific project list agreed to by the DMC
Board, including a new Children's Hospital tower, new modern patient
units at Receiving, doubling of the Sinai Grace emergency room, a major
renovation of OR space at Harper, and new physician office buildings at
Harper and Sinai Grace. The other $350 million will be for ongoing
repairs and capital and equipment needs at DMC.
5) The existing DMC Board chaired by Steve D'Arcy will remain in place and
administer the existing $140 million in charitable funds given to DMC
over the years and will make sure all donor funds are spent as
originally intended. The DMC Board will also have the legal right to
enforce Vanguard's commitments under the purchase agreement.
6) The agreement is conditioned on the approval of a Wayne County
sponsored Renaissance Zone for DMC's Central Campus, which will require
state, city, and county approvals.