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Modern Healthcare - - Regional News -

UR­BANA, Ill.—

Carle Foun­da­tion Hos­pi­tal com­pleted its pre­vi­ously an­nounced ac­qui­si­tion of Carle Clinic As­so­ci­a­tion, which in­cludes a prac­tice with about 340 physi­cians and a sub­sidiary health plan with about 320,000 en­rollees, Health Al­liance Med­i­cal Plans. The $250 mil­lion deal closed April 1. The Carle Clinic prac­tice is now called Carle Physi­cian Group and re­tains Bruce Well­man as CEO. “The time is right for this tran­si­tion,” Well­man said in a news re­lease, which noted the or­ga­ni­za­tions have ex­plored be­com­ing a sin­gle en­tity on three pre­vi­ous oc­ca­sions. Well­man and James Leonard, pres­i­dent and CEO of the 279-bed hos­pi­tal, said they will be­gin a process of be­com­ing a fully in­te­grated, physi­cian-led health­care sys­tem. Carle Foun­da­tion will fi­nance the ac­qui­si­tion with an $82.8 mil­lion bond is­sue and a prom­is­sory note for the bal­ance, ac­cord­ing to its ap­pli­ca­tion for a cer­tifi­cate of need from the Illi­nois Health Fa­cil­i­ties and Ser­vices Re­view Board.

DETROIT—

The pro­posed pur­chase of Detroit Med­i­cal Cen­ter by Van­guard Health Sys­tems, Nashville, took an ad­di­tional step for­ward as the Detroit City Coun­cil ap­proved a 15-year tax waiver upon which the deal is con­tin­gent, ac­cord­ing to a city of­fi­cial. The coun­cil also voted to es­tab­lish a cit­i­zens re­view board that would over­see Van­guard’s com­pli­ance with the terms of its pro­posed ac­qui­si­tion of six-hos­pi­tal DMC for $417 mil­lion and an $850 mil­lion cap­i­tal com­mit­ment, said Quan­tez Press­ley, com­mu­ni­ca­tions di­rec­tor for City Coun­cil Pres­i­dent Charles Pugh. Wayne County com­mis­sion­ers voted this month to es­tab­lish a Re­nais­sance Zone for DMC. Un­der state law, busi­nesses in a Re­nais­sance Zone have all state, county and lo­cal taxes waived for 12 years, fol­lowed by three years of re­duced taxes. The state Leg­is­la­ture would have to vote to ap­prove the Re­nais­sance Zone for it to go into ef­fect, Press­ley said. The DMC sale also re­quires the ap­proval of the Michi­gan at­tor­ney gen­eral. DMC and Van­guard signed a let­ter of in­tent last month that ex­pires June 1.

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