$1.58 Billion to be Invested in Purchase and Improvement of DMC by Vanguard
In an interesting and surprising new announcement that would result in bringing Detroit one of its biggest ever investments, the Detroit Medical Center on Friday shared its plans to use its deal worth $1.5 Billion with a Nashville, Tenn., based health care firm to improve and transform its aging facilities and services to state-of-the-art medical destinations, which would lure patients from both Detroit and far off.
"This is like nothing this city has ever seen", CEO Mike Duggan said.
He shared that while DMC has been making good money for 6 long years, banks and investors have always tried to run away from lending the not-for-profit establishment any money for new projects, mainly because of DMC's $639 Million in bond and pension debt, massive losses incurred due to offering care services to the poor and the city's falling population.
Now, Vanguard Health Systems, which is an investor-owned firm, plans to invest a sum of $850 Million at DMC facilitates, which would be inclusive of a Cardiovascular Institute and substantial expansions at its Children's Hospital of Michigan, two projects which have been stalled for years because of the lack of funds.
The two groups are hoping to complete the purchase by the time June rolls in.