Vanderbilt University Medical Center in Nashville, Tenn., plans to become independent from the university to expand the Vanderbilt Affiliated Health Network, according to The Tennessean.
The decision was made in light of the consolidation of healthcare, VUMC's success last year generating $2.8 billion in revenue and a year-long study by the Vanderbilt Board of Trust, according to the report.
"This is not a move that is reactive to a problem. Rather it is a look at the future, saying we're going to be successful in the new healthcare economy. We need a financial structure that gives us more flexibility," said Jeff Balser, MD, PhD, CEO of VUMC and vice chancellor for health affairs and dean of the Vanderbilt School of Medicine.
A new board with representatives from the university and the medical center will oversee VUMC operations. The shift will not noticeably affect employees or patients, according to the report. Both university employees and VUMC employees will keep their current benefits and Vanderbilt professors will continue to staff medical centers and conduct medical research at hospitals.
The Vanderbilt Affiliated Health Network encompasses 3,200 physicians and 50 hospitals across five states. Independence will allow VUMC to more easily secure funds from the private equity market for the affiliation network, according to the report.
The operation will take 12 to 18 months. The medical center has no plans to acquire more hospitals at this time, according to the report.
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