Detroit Medical Center has delayed its $1.5 billion sale to Vanguard Health Systems until Dec. 31, according to a report by the Detroit Free Press.
The sale was previously scheduled for Oct. 31, but was pushed back following word from the Michigan Attorney General's office on Monday that there was no timeline for a decision on the deal by Attorney General Mike Cox. Attorney General Cox has hired two consulting firms to review the sale, according to the report. The Attorney General must approve the transaction, since it involves the transfer of charitable assets to a for-profit entity.
DMC CEO Mike Duggan said that no one is to blame for the delay, calling the deal "the largest hospital deal in 10 years and the first time Michigan has ever had to review a sale to a for-profit," according to the report.
Despite pushing back the closing date, DMC and Vanguard plan to proceed on Monday with the groundbreaking of a $1 million pediatric outpatient facility in Detroit. The two groups formed a joint venture for the center so development could begin in advance of the full acquisition.
Read the Detroit Free Press report on DMC.
Read more coverage on DMC.
- Michigan AG: No Timeline for Decision on Detroit Medical Center Sale
- FTC Clears Vanguard's Acquisition of Detroit Medical Center
- Following Sale to Vanguard, Detroit Medical Center to Kick Off 15 Construction Projects
The sale was previously scheduled for Oct. 31, but was pushed back following word from the Michigan Attorney General's office on Monday that there was no timeline for a decision on the deal by Attorney General Mike Cox. Attorney General Cox has hired two consulting firms to review the sale, according to the report. The Attorney General must approve the transaction, since it involves the transfer of charitable assets to a for-profit entity.
DMC CEO Mike Duggan said that no one is to blame for the delay, calling the deal "the largest hospital deal in 10 years and the first time Michigan has ever had to review a sale to a for-profit," according to the report.
Despite pushing back the closing date, DMC and Vanguard plan to proceed on Monday with the groundbreaking of a $1 million pediatric outpatient facility in Detroit. The two groups formed a joint venture for the center so development could begin in advance of the full acquisition.
Read the Detroit Free Press report on DMC.
Read more coverage on DMC.
- Michigan AG: No Timeline for Decision on Detroit Medical Center Sale
- FTC Clears Vanguard's Acquisition of Detroit Medical Center
- Following Sale to Vanguard, Detroit Medical Center to Kick Off 15 Construction Projects