$1.27 BILLION DEAL WOULD BE FIRM’S BIGGEST YET
By Dan Emerson
For decades, the city of Detroit has been a poster child for post-industrial, urban decay. With the U.S. auto industry in slow, steady decline, the Motor City has lost roughly half of its population since its peak of 1.8 million some 60 years ago.
But Detroit’s economic woes did not dissuade Nashville-based Vanguard Health Systems Inc. from making what amounts to a $1.27 billion bet on the city’s future.
In March, Vanguard, a privately owned, for-profit operator of hospitals and other medical facilities, announced that it has entered an agreement to acquire the nine-hospital Detroit Medical Center (DMC) system for $417 million.
As part of the pending deal, Vanguard has also agreed to invest another $850 million to upgrade DMC’s facilities and equipment, and to add 1,000 staff positions.
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