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Purchase of Detroit Medical Center Announced

This morning, the intended purchase by Nashville-based Vanguard Health System of the Detroit Medical Center was announced via a joint press release. Vanguard’s Letter of Intent announces that it will invest $850 million into the DMC over the next five years, and promises to keep all eight of DMC’s hospitals open for 10 years.

Additionally, Vanguard intends to keep in place DMC’s charity care policy and board, though a new regional advisory board will be created to oversee all DMC hospitals. The purchase is contingent on the approval of DMC’s central Campus as a Renaissance Zone by Wayne County–which will create significant tax benefits.

The purchase price for Michigan’s largest health care system is $417 million.

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