AG Cox Approves DMC Sale
Michigan Attorney General Mike Cox approves the proposed sale of the Detroit Medical Center to Vanguard Health Systems.
Cox released a report on Saturday explaining how he came to his decision. And excerpt from that report is below;
DMC is also the largest employer in Detroit and provides training resources for future physicians, nurses, and other health-care professionals. It is essential that DMC continue to operate.
Vanguard's offer includes a commitment to invest $850 million in Detroit to improve the DMC facilities. Vanguard also promises to maintain charity care, to continue operating DMC's hospitals, and to provide essential core health-care services.
But DMC hospitals will no longer be owned and operated by a Michigan charitable nonprofit hospital system. As the Michigan official charged with overseeing charitable gifts and trusts, the Attorney General must ensure that charitable assets are preserved and protected for their designated
charitable uses.
To this end, I assigned a core team of eight professionals on my staff, including
seven attorneys and an accountant, to conduct a thorough and independent evaluation of this complex transaction and to consider every comment received from the public.
After extensive review, I approve the proposed sale, provided that the parties agree to make additional commitments necessary to safeguard the public interest.
These commitments include protections for $140 million in charitable gifts held by DMC; assurances of resources necessary to police Vanguard's performance; and, acknowledgement of the Attorney General's authority to institute legal action to enforce Vanguard's promises.
With these additional commitments, I conclude DMC will receive fair market value for its assets; Vanguard will have the means to carry out its promises; adequate means exist to hold Vanguard to its word; and, restricted charitable gifts held by DMC will be preserved for intended charitable purposes.
