Detroit Medical Center paid off outstanding debt with operating cash, reducing its cash purchase price to Nashville, Tenn.-based Vanguard Health System by $26 million, according to a Crain’s Detroit Business report.
After the pay-off, for-profit Vanguard will still pay $391 million for DMC, an eight-hospital non-profit academic medical system. DMC officials declined comment on why the system paid off its own debt.
Vanguard has also agreed to fund $850 million in DMC capital improvement projects and fund about $278 million in liabilities. The total acquisition price remains about $1.5 billion, and the deal is expected to close by 2011, pending federal and state approval.
The acquisition will be the single largest private investment in Detroit’s history, according to a DMC news release. DMC and Vanguard recently went in on a $1 million joint venture to develop a Children’s Specialty Center.
Read the Crain’s Detroit Business report on DMC and Vanguard.
Read more about DMC's sale:
-DMC Delays Vanguard Sale Until Dec. 31
-Following Sale to Vanguard, Detroit Medical Center to Kick Off 15 Construction Projects
-Vanguard and Detroit Medical Center Sign Final Agreement
After the pay-off, for-profit Vanguard will still pay $391 million for DMC, an eight-hospital non-profit academic medical system. DMC officials declined comment on why the system paid off its own debt.
Vanguard has also agreed to fund $850 million in DMC capital improvement projects and fund about $278 million in liabilities. The total acquisition price remains about $1.5 billion, and the deal is expected to close by 2011, pending federal and state approval.
The acquisition will be the single largest private investment in Detroit’s history, according to a DMC news release. DMC and Vanguard recently went in on a $1 million joint venture to develop a Children’s Specialty Center.
Read the Crain’s Detroit Business report on DMC and Vanguard.
Read more about DMC's sale:
-DMC Delays Vanguard Sale Until Dec. 31
-Following Sale to Vanguard, Detroit Medical Center to Kick Off 15 Construction Projects
-Vanguard and Detroit Medical Center Sign Final Agreement