The Michigan Attorney General's Office has selected two consulting firms to review Vanguard Health Systems' planned acquisition of eight-hospital Detroit Medical Center. According to the Free Press, AlixPartners of Chicago and Focus Management Group of Tampa will "evaluate the financial viability of the purchase" and review "whether DMC's historic commitment to serve the poor will be maintained after the sale." Vanguard and DMC announced their definitive agreement for the $1.2 billion deal last week. The parties hope to close by Nov. 1.
Jun 14, 2010 2:50 PM
Vanguard Health Systems has signed a definitive purchase agreement to acquire eight-hospital Detroit Medical Center. The deal, first announced in March, has a cash purchase price of $417 million with an additional $850 million in capital commitments over the next five years. From here, the acquisition must be approved by Michigan Attorney General Michael Cox, given that DMC will transition from a nonprofit to a for-profit entity under Vanguard. Closing is also subject to regulatory and other approvals. Vanguard is planning to seal the deal no later than November 1. More background on the deal, including coverage of local labor group opposition, is available here and here. Earlier this week, Vanguard received approval from Illinois regulators to purchase two hospitals from Resurrection Health Care.
Jun 11, 2010 9:40 AM
Detroit Medical Center officials have extended by 10 days their deadline to wrap up the paperwork involved in the sale of the eight-hospital system to Nashville-based Vanguard. Once complete, the planned transaction will go before the Michigan Attorney General.
Jun 1, 2010 12:49 PM
Michigan company to lease 150,000 square feet in phases; incentives still in the works
May 25, 2010 11:39 AM
The coalition of community groups opposing Vanguard Health Systems' planned acquisition of Detroit Medical Center have asked Michigan's attorney general to launch an investigation that would, among other things, examine the company's track record in Arizona, Illinois, Massachusetts and Texas.
“We want to know if Vanguard provided essential services to the community” after those purchases, While a pledge by Vanguard to invest $850 million in DMC improvements will provide short-term benefits, “what’s in it for the long term?” said Marjorie Mitchell, a coalition spokeswoman and executive director of the health care network.Hmm, not to go all hometown cheerleader on you, but $850 million sounds pretty long-term to me.
Apr 7, 2010 8:01 AM
Vanguard Health Systems' plan to buy Detroit Medical Center, already facing headwinds, got some more competition yesterday when a local health system announced plans to invest $500 million in renovations and the creation of a mixed-use "health park." According to the Free Press, Henry Ford Health System said the planned upgrades to its flagship Detroit hospital were, in part, a result of Vanguard's move to buy DMC and invest $850 million to spruce up the eight-hospital system. In other competition news, the nonprofit group that last week announced opposition to Vanguard's buy in a letter to Michigan's attorney general tomorrow will meet with a representative from the AG's office to discuss their concerns in more detail.
Apr 6, 2010 2:46 PM
The Coalition to Protect Detroit Health Care this week sent a letter (and what looks like an essay test) to Michigan Attorney General Mike Cox, opposing the sale of Detroit Medical Center to Nashville's Vanguard Health Systems. The Free Press has the full text of the letter, which argues the sale violates the state's nonprofit corporation statute. Here's a snippet:
We understand the desire to move swiftly – by June 1, 2010 according to the press. But this sale will have a long term effect on the residents of Detroit and Southeast Michigan. The commitments in the LOI are only for 10 years while a not-for-profit with its mission is forever. Rather than having the cash flow of the DMC remain in Detroit, a portion of the cash will be sent to Tennessee and after 10 years VHS is free to do with our community assets what VHS wants, based solely on their bottom line and not on the needs of Detroiters.
Mar 31, 2010 7:01 AM
Tennessee trails only Ohio, Texas, Michigan and Pennsylvania in the latest Site Selection ranking of state's economic development performance. State officials are chuffed.
“This recognition is especially rewarding because it comes during one of the most challenging economic development environments in decades,” said Matt Kisber, commissioner, Tennessee Department of Economic and Community Development. “Tennessee’s ability to help companies with projects by reducing red tape, finding answers quickly and developing partnerships with local communities has been a key differentiator for our state.”
Mar 4, 2010 8:23 AM
Nashville-based Cavalry Transportation has been acquired by Universal Truckload Services out of Michigan for an undisclosed amount. Universal (Ticker: UACL) said the purchase was one of three it wrapped up last month and that the new holdings will contribute $35 million to its top line this year with profits beginning to flow in during the summer. Cavalry — whose name is inspired in part by Teddy Roosevelt — also runs offices in Chicago and Memphis.
Jan 15, 2010 8:40 AM
After closing 14 plants last year, GM is now wrestling with capacity shortages for its crossover vehicles. At the North American International Auto Show, the auto maker's new North American president said he is a fan of Spring Hill's versatility, but stopped short of talking about restarting production in Maury County. Ironically, Mark Reuss made his comments on the day the first group of Spring Hill transplants started their new jobs in Lansing, Mich.
Jan 11, 2010 9:30 PM