After the pay-off, for-profit Vanguard will still pay $391 million for DMC, an eight-hospital non-profit academic medical system. DMC officials declined comment on why the system paid off its own debt.
Vanguard has also agreed to fund $850 million in DMC capital improvement projects and fund about $278 million in liabilities. The total acquisition price remains about $1.5 billion, and the deal is expected to close by 2011, pending federal and state approval.
The acquisition will be the single largest private investment in Detroit’s history, according to a DMC news release. DMC and Vanguard recently went in on a $1 million joint venture to develop a Children’s Specialty Center.
Read the Crain’s Detroit Business report on DMC and Vanguard.
Read more about DMC’s sale:
–DMC Delays Vanguard Sale Until Dec. 31
–Following Sale to Vanguard, Detroit Medical Center to Kick Off 15 Construction Projects
–Vanguard and Detroit Medical Center Sign Final Agreement
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.