Detroit Medical Center's Legacy Board is planning to hire an independent financial consultant to assess the readiness of two local foundations to take on $150 million in charitable assets that remain after Vanguard Health Systems acquired DMC last December, according to a Crain's Detroit Business report.
The Legacy Board was created to oversee Vanguard's $850 million investment and charity care commitments to DMC after the sale was complete. The assets will be transferred to the Children's Hospital of Michigan Foundation and the Health and Wellness Foundation of Greater Detroit. The independent review will likely examine the foundations' plans for managing the assets, the grant administration processes they have in place and their financial forecasts for the next five years, according to the report.
The Legacy Board is required to retain 80 percent of the charitable assets for two years, and no single foundation can receive more than $30 million for the first three years. Despite these time restrictions, no timetable has been set for transferring the charitable assets to the two foundations, according to the report.
The readiness reports for the two foundations are expected to be completed as soon as June, according to the report. The Legacy Board also plans to invite Michigan Attorney General Bill Schuette to its March board meeting to discuss any concerns about transferring the assets to the foundations.
Read the Crain's Detroit Business report on DMC.
Read more about DMC:
- Vanguard Doesn't Plan Major Change of Leadership for Detroit Medical Center
- Vanguard Begins Restructuring DMC's Sinai-Grace Hospital
The Legacy Board was created to oversee Vanguard's $850 million investment and charity care commitments to DMC after the sale was complete. The assets will be transferred to the Children's Hospital of Michigan Foundation and the Health and Wellness Foundation of Greater Detroit. The independent review will likely examine the foundations' plans for managing the assets, the grant administration processes they have in place and their financial forecasts for the next five years, according to the report.
The Legacy Board is required to retain 80 percent of the charitable assets for two years, and no single foundation can receive more than $30 million for the first three years. Despite these time restrictions, no timetable has been set for transferring the charitable assets to the two foundations, according to the report.
The readiness reports for the two foundations are expected to be completed as soon as June, according to the report. The Legacy Board also plans to invite Michigan Attorney General Bill Schuette to its March board meeting to discuss any concerns about transferring the assets to the foundations.
Read the Crain's Detroit Business report on DMC.
Read more about DMC:
- Vanguard Doesn't Plan Major Change of Leadership for Detroit Medical Center
- Vanguard Begins Restructuring DMC's Sinai-Grace Hospital