Private Equity at Work: Investing in Detroit’s Health
Detroit Medical Center
In December 2010, Vanguard Health Systems, a Blackstone-owned company, acquired the Detroit Medical Center (DMC), one of Detroit’s leading healthcare providers and a nationally and regionally recognized medical system. Because of difficult financial markets in 2008-2009, DMC was seeking a buyer who would not only uphold DMC’s long-standing tradition of clinical excellence, but also provide the capital necessary to expand and upgrade its facilities. As part of the acquisition, Vanguard committed to invest $850 million over five years to fund routine capital improvements and new capital projects. Vanguard’s investment was one of the largest private investments in Detroit’s history.
- The new capital will fund 15 construction projects ranging from routine capital improvements to new capital projects, including a new Children’s Hospital Ambulatory Center and Tower, a New Cardiovascular Center and Special Ambulatory Building at Harper University Hospital.
- These projects will create approx. 5,000 construction jobs and bring many permanent jobs to the medical center.
- Blackstone and Vanguard’s partnership with the DMC will have a lasting impact on the city of Detroit, helping to bring world-class medical facilities to Detroit residents that match the world-class service DMC already provides.
- DMC consists of 8 hospitals and has over 12,000 employees, including 3,000 physicians. The system has approximately 1,400,000 annual patient visits per year.
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