The Detroit Medical Center (DMC) Board of Trustees and Nashville, Tenn.’s Vanguard Health Systems Inc. have signed a letter of intent for DMC to become part of the Vanguard system and for Vanguard to invest $850 million in capital improvements to DMC’s eight-hospital system.
According to the organizations, the letter of intent has six major provisions, two of which include:
Vanguard will acquire all of the DMC System’s assets (other than donor-restricted assets) for a purchase price that includes approximately $417 million to retire all outstanding DMC bonds and other long-term indebtedness and also requires Vanguard to assume all DMC liabilities (other than such bonds and long-term indebtedness).
Vanguard has agreed to spend $850 million in capital investment in DMC over the next five years, more than $800 million in the City of Detroit.
The letter of intent is non-binding and extends through June 1, 2010, at which time the parties are required to have completed a mutually acceptable binding definitive agreement.
The Ohio State University Wexner Medical Center (OSUWMC) received the American Health Information Management Association (AHIMA) annual Grace Award in recognition of its leadership in health information management.