March 22, 2010

DMC sale may mean more competition

Crain's Detroit Business
Detroit Medical Center's intent to sell its eight-hospital system to for-profit Vanguard Health Systems could stimulate competition between hospitals in Southeast Michigan for paying patients and intensify efforts by hospitals to acquire physician organizations, said several experts.

“Michigan is one of the last places to get a significant influx in investor-owned hospitals, assuming this deal goes through,” said Allan Baumgarten, a Minneapolis-based health care consultant who is familiar with the Michigan market.

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