Vanguard Health Systems may be more than $20 million short on meeting its promise of capital improvements for Detroit Medical Center, which Vanguard made when it acquired DMC in January, according to a Detroit News report.
As part of the deal, Vanguard pledged $850 million in capital improvements for DMC over five years, with a minimum of $80 million to be spent in each of the first four years. Vanguard may be $20 million short because the first year is committed to design planning, according to the report.
As a result, Vanguard has set aside $20 million into an escrow account. DMC President and CEO Mike Duggan anticipated the first-year shortfall and said by the end of 2012, Vanguard will meet its $160 million obligation, according to the report.
As part of the deal, Vanguard pledged $850 million in capital improvements for DMC over five years, with a minimum of $80 million to be spent in each of the first four years. Vanguard may be $20 million short because the first year is committed to design planning, according to the report.
As a result, Vanguard has set aside $20 million into an escrow account. DMC President and CEO Mike Duggan anticipated the first-year shortfall and said by the end of 2012, Vanguard will meet its $160 million obligation, according to the report.
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