For-profit Vanguard Health Systems completed its acquisition of eight-hospital Detroit Medical Center on Friday, according to a Detroit Free Press report.
The deal follows a forced $30 million settlement between DMC and the federal government for improper relationships with physicians. DMC president and CEO Mike Duggan said the violations were "minor," according to the report.
As part of the deal, Vanguard will take on $391 million in DMC's debt and assumes the health system's unfunded pension obligations and malpractice liabilities estimated at $335 million. Vanguard has also pledged $850 million in capital improvements for DMC.
Read the Detroit Free Press report on Detroit Medical Center.
Read previous coverage of Detroit Medical Center:
- Detroit Medical Center Pays $30M for Improper Relationships With Physicians
- DMC Pays Off Outstanding Debt, Reducing Vanguard's Cash Purchase Price
- DMC, Vanguard Joint Venture Center Breaks Ground
The deal follows a forced $30 million settlement between DMC and the federal government for improper relationships with physicians. DMC president and CEO Mike Duggan said the violations were "minor," according to the report.
As part of the deal, Vanguard will take on $391 million in DMC's debt and assumes the health system's unfunded pension obligations and malpractice liabilities estimated at $335 million. Vanguard has also pledged $850 million in capital improvements for DMC.
Read the Detroit Free Press report on Detroit Medical Center.
Read previous coverage of Detroit Medical Center:
- Detroit Medical Center Pays $30M for Improper Relationships With Physicians
- DMC Pays Off Outstanding Debt, Reducing Vanguard's Cash Purchase Price
- DMC, Vanguard Joint Venture Center Breaks Ground