“There is a lot of money available for profits and almost no money available for not-for-profits,” said Sheryl Skolnick, a healthcare analyst at CRT Capital Group in Stamford, Conn.
Vanguard can rely on investors for financing, giving it a “significant competitive advantage” over not-for-profits, who have to raise capital in the bond market, which have been damaged by the credit crisis, she said.
As part of its purchase offer, which requires state approval, Vanguard would invest $850 million over five years to modernize the Detroit Medical Center’s eight hospitals.
Read the Detroit News’ report on Detroit Medical Center.
