Detroit Medical Center, which is expected to be acquired by Vanguard Health Systems tomorrow in a deal valued at $1.5 billion, will pay $30 million to the government for improper financial relationships it had with physicians, according to a CNBC report.
The relationships, which included lease deals and independent contractor relationships that were not in writing or were not at fair market value, were discovered as the health system and Vanguard completed due diligence for Vanguard's acquisition of DMC.
A Vanguard executive said in a Detroit News report that the deal remains on schedule and both sides hope to make the acquisition official tomorrow.
As part of the deal, Vanguard will take on $391 million in DMC's debt and assumes the health system's unfunded pension obligations and malpractice liabilities estimated at $335 million. Vanguard has also pledged $850 million in capital improvements for DMC.
Read more coverage on Detroit Medical Center:
- Michigan Attorney General Approves Detroit Medical Center Sale
- DMC Pays Off Outstanding Debt, Reducing Vanguard's Cash Purchase Price
- DMC Delays Vanguard Sale Until Dec. 31
The relationships, which included lease deals and independent contractor relationships that were not in writing or were not at fair market value, were discovered as the health system and Vanguard completed due diligence for Vanguard's acquisition of DMC.
A Vanguard executive said in a Detroit News report that the deal remains on schedule and both sides hope to make the acquisition official tomorrow.
As part of the deal, Vanguard will take on $391 million in DMC's debt and assumes the health system's unfunded pension obligations and malpractice liabilities estimated at $335 million. Vanguard has also pledged $850 million in capital improvements for DMC.
Read more coverage on Detroit Medical Center:
- Michigan Attorney General Approves Detroit Medical Center Sale
- DMC Pays Off Outstanding Debt, Reducing Vanguard's Cash Purchase Price
- DMC Delays Vanguard Sale Until Dec. 31