Detroit Medical Center, the eight-hospital complex bought by Nashville-based Vanguard Health Systems in December 2010, has signed an agreement to buy a health maintenance organization that services Wayne County, Mich.
ProCare Health Plan offers health care coverage to about 10,000 Medicaid beneficiaries in the Detroit area. The company was licensed as an HMO in late 2000. Vanguard didn't disclose terms of its deal, but crainsdetroit.com says the transaction is worth a little more than $6 million and includes a separate payment equal to ProCare’s net equity.
Detroit Medical Center has been chosen as a so-called Pioneer Accountable Care Organization that melds insurance coverage and patient care in different settings. Slotting in ProCare's offerings will be key to growing that platform, said DMC CEO Mike Duggan.
"The future of healthcare is in achieving better health for our community, better healthcare for our patients, and lower costs," Duggan said. "ProCare's experience in managed care is a key component in aligning DMC to where healthcare is moving. Our acquisition of ProCare better enables us to capitalize on many of the State and Federal initiatives in providing care, particularly to special needs populations."