Legacy DMC, the non-profit organization monitoring Vanguard’s obligations to DMC, sent a report (pdf) to the office of Michigan Attorney General Bill Schuette. When for-profit Vanguard bought DMC, it promised to spend $80 million in capital projects, but in 2011, that figure only reached $38.2 million. However, Vanguard deposited $41.8 million into an escrow account as an alternative.
The $36.4 million in general capital investments fell short of the $50 million required. Vanguard assured Legacy DMC that spending for both categories will bounce back this year and cover all shortfalls from 2011. “It is also noteworthy that the [agreement] provided not only a five-year period to accomplish the specified capital projects investments, but also a two-year extension period,” according to the report.
The report indicated Vanguard has met all other obligations as part of the agreement to take over DMC, such as the continuance of charity care, no further sales of DMC facilities and the initiation of health and wellness programs, among others.
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