DETROIT – How bad are things in Detroit? Shortly before this edition of Healthcare Real Estate Insights™ went to press, Detroit’s mayor, former NBA star Dave Bing, was reportedly planning to propose that blighted parts of the city simply be abandoned and cleared – reverting to rural areas. But it also now looks as if a mega-hospital deal could pump some life back into Detroit, which, because of the battered auto industry, has suffered even more than most cities during the recession. Officials with the eight-hospital Detroit Medical Center (DMC) system announced that privately owned Nashville, Tenn.-based Vanguard Health Systems Inc. had signed a letter of intent to acquire DMC in a deal worth a total of $1.27 billion. Vanguard, which would operate the hospitals through a subsidiary known as VHS Michigan, would pay $417 million to retire DMC’s outstanding debts. In addition, Vanguard would be obligated to spend $850 million in capital investments in the DMC system over five years – more than $800 million of which would be spent within the city of Detroit. “Vanguard’s
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