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.
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.