Tennessee-based Vanguard Health Systems has acquired the Detroit Medical Center. The company plans to invest $800 million in its city of Detroit facilities and create a number of new jobs over the next five years.
"We would expect to hire additional clinical personnel and management personnel," says Phil Roe, CFO of Vanguard. He added that his firm expects to use local resources (contractors, construction workers, materials, etc.) for the new construction and renovation projects.
Those proposed projects include a new Children's Hospital tower, new modern patient units at Detroit Receiving, doubling of the Sinai Grace emergency room, a major renovation of Harper, and new physicians office buildings at Harper and Sinai Grace hospitals.
Those projects are expected to cost $500 million. The other $300 million will go toward ongoing capital projects and repairs at the DMC's facilities in Detroit. Another $50 million in improvements is slated for its suburban facilities.
Vanguard intends to keep the DMC name and the names of its hospitals. The staffing levels of those hospitals are expected to grow with the investment, and research endeavors are expected to continue.
"We anticipate supporting traditional biomedical research and other innovations," says Brad Perkins, an executive vice president with Vanguard.
Source: Phil Roe, CFO of Vanguard, and Brad Perkins, executive vice president with Vanguard
Writer: Jon Zemke