A New Partnership

Transcription

A New Partnership

A New
Partnership
For Detroit
DMC and Vanguard Health System
Detroit Medical Center (DMC) offers Vanguard Health Systems the opportunity to make a
significant investment in an already successful, high quality health care system in Detroit
Proposed Investment and Estimated Cost
Project List
and lift it to the ranks of the elite systems in the country.
Project
Hospital
Estimated Cost
DMC has overcome challenging economic times to remain in the black year after year,
Pediatric Specialty Center
Children’s New Tower
Clinic Building Backfill
Children’s
Children’s
Children’s
$ 33,000,000
$170,000,000
$ 5,200,000
$208,200,000
Patient Care Unit Renovations
Detroit Receiving
Pre/Post Op Space Enhancement Detroit Receiving
2 Additional Operating Rooms
Detroit Receiving
$ 20,000,000
$ 2,400,000
$ 6,400,000
$ 28,800,000
Surgical Services Renovation
Lobby Expansion/Renovation
Ground Floor Redesign
Inpatient Unit Renovations
Cardiovascular Institute &
Outpatient Specialty Bldg
Harper/Hutzel/CVI
Harper/Hutzel/CVI
Harper/Hutzel/CVI
Harper/Hutzel/CVI
Harper/Hutzel/CVI
$
$
$
$
$
20,000,000
10,000,000
20,000,000
11,250,000
75,140,000
$136,390,000
Rebuilding Mack Parking Deck
Central Campus
$ 35,300,000
$ 35,300,000
6th Floor Renovation
Rehab Hospital
$ 2,850,000
$ 2,850,000
Emergency Dept Expansion
Façade/Front Entrance
Outpatient Ambulatory Bldg
ICU Expansion
Radiology Relocation
Sinai Grace
Sinai Grace
Sinai Grace
Sinai Grace
Sinai Grace
$ 33,000,000
$ 10,000,000
$ 25,500,000
$ 5,000,000
$ 4,200,000
$ 77,700,000
Private Room Renovation
ICU Bed Expansion
Huron Valley
Huron Valley
$ 6,800,000
$ 4,000,000
$ 10,800,000
Routine Capital Expenditures
$350,000,000
$850,040,000
but it hasn’t had the resources to build the kind of modern hospitals opening in the
suburbs. Vanguard’s investment will change all that, providing a strong financial
foundation to preserve, protect and strengthen all of DMC’s hospitals for the future.
Vanguard will be investing $850 million in DMC hospitals in the next 5 years.
$500 million will go to major projects, including a brand new 4 story Pediatric Specialty
Center, a 175,000 square foot Children’s Hospital Tower, a new Cardiovascular Institute,
and expanded and modernized facilities at Detroit Receiving, Sinai Grace, Harper/Hutzel,
Rehabilitation Institute, and Huron Valley-Sinai.
The remaining $350 million will be for ongoing equipment and capital needs,
everything from new DaVinci Surgery Robots to replacement angiography suites and
cath labs to badly needed anesthesia machines, ventilators, ultrasounds, and patient
monitoring equipment.
These are the investments we need to preserve and protect DMC’s historic mission to
provide charitable care and to allow a hospital system based right here in Detroit to
develop into one of the finest health care systems in America.
A New Partnership For Detroit
Total
DMC Children’s Hospital of Michigan
Construction of Four-Story Expanded, Cutting-Edge
DMC Children’s Hospital of Michigan Hospital was built in 1971 with a capacity to hospitalize
600 patients a month. Today, we see more than 1,000. The operating room’s were built to handle
400 surgeries a month. Today, we do more than 1,200. Clinics were built to handle 4,000 children
a month. We now see 16,000 a month.
AFTER
To better meet the health care needs of Michigan’s children we will build the Children’s Hospital of
Michigan Pediatric Specialty Center to meet extraordinary patient demand.
The Pediatric Specialty Center consolidates outpatient services in a flexible facility that emphasizes
primary and preventative care for Children’s Hospital. By facilitating patient access to services, including labs, X-ray and immunization facilities, specialty clinics, and physicians’ offices, the Center’s
design fosters a culture of wellness.
A general pediatric clinic, comprehensive outpatient rehabilitation clinic, and specialty clinics
occupy three floors of the Center while a fourth floor houses physician office suites. The design of
the glass-walled Center enhances and complements the existing campus. The Center frees up space
for future medical program expansion in the Main Hospital.
Project Estimate: $33,000,000
BEFORE
Construction of a Modern 175,000 Sq. Ft. Hospital Tower
Housing 4 Centers of Excellence
The New Children’s Hospital will comprise of five floors and new patient beds. This new
hospital will be designed with larger inpatient rooms to accommodate new medical technology
and expanded family-centered care services.
New construction will total 175,000 square footage and 125,000 square footage of existing
space will be renovated. Floor space will increase by about 30 percent overall. This additional support space will provide for more family-centered care, increased operating
room capacity, expanded intensive care space, new technologies, and expanded space for
pre- and post-operative surgical activities.
A $5.2 million plan for remodeling the Carls Building for new physician clinics will add to the
feel of a completely new Children’s Hospital complex.
Total DMC Children’s Hospital of Michigan Estimate: $208,200,000
Patient Tower
5
DMC Detroit Receiving Hospital
Makeover and Modernization of the City’s
Historically Revered “Gemstone” Hospital, Detroit Receiving
DMC Detroit Receiving Hospital patients share a single bathroom between two patient rooms.
The renovation will allow the construction of new units providing for one bathroom per patient
room. While the design is still being finalized, the renovation contemplates building out two new
modern floors.
AFTER
DRH will also receive two new state-of-the-art operating rooms.
Additional projects include: Increasing space in the pre- and post-operative units.
Total DMC Detroit Receiving Hospital Estimate: $28,800,000
BEFORE
7
DMC Harper University Hospital
and DMC Hutzel Women’s Hospital
Expanded State-of-the-Art Operating Rooms
DMC Harper University Hospital Surgical Services area was constructed in 1975. Surgical Services
at that time consisted mostly of inpatient services, where 90 percent of patients required a postoperative stay in the Hospital. Current surgical services result in 40 percent of patients requiring
post-operative stay in the Hospital. This change in surgery mix demands a larger, more comprehensive area for pre- and post- operative services. These areas are currently undersized in square footage
and number to meet our patient needs.
The Surgical Services renovation will more than double the space available for pre- and postoperative care of surgery patients and add cutting-edge technology.
BEFORE
AFTER
DMC Harper University Hospital,
DMC Hutzel Women’s Hospital and
DMC Cardiovascular Institute
Enhanced Reception and Patient Information Areas
DMC Harper University Hospital, DMC Hutzel Women’s Hospital and DMC Cardiovascular
Institute main floors and corridors will be renovated for patients and visitors to find their way to
clinical services through both hospitals. The layout does not allow for adequate patient lobby or
concourse space. The space will be larger and uniform for way-finding from the main and
ground floors.
BEFORE
AFTER
DMC Harper University Hospital,
DMC Hutzel Women’s Hospital and
DMC Cardiovascular Institute
Improving Patient Environment for Care
AFTER
This project will include renovating four patient floors. Patient rooms will be brought to current
standards for both private and semi-private care. The bathrooms will be brought to handicap
accessible code standards.
New expanded nursing work areas will be added to meet the demands of physicians, nurses and
medical residents. Additional upgrades on the heating and cooling system will be made for greater
patient comfort and hospital efficiency.
Adding Needed Parking on Main Campus
Currently the main campus of the Detroit Medical Center does not have adequate parking for
visitors and staff to meet the demands of patient care. DMC leases space and shuttles staff to meet
demands. The Mack Parking Deck will be demolished to dramatically open up the southern end of
the downtown campus. A new parking deck with 1,750 parking spaces will be located next to the
new DMC Cardiovascular Institute. This dramatic new entrance will compliment Midtown.
Total DMC Main Campus Parking Estimate: $35,300,000
BEFORE
DMC Cardiovascular Institute and
Outpatient Specialty Building
First Class Facility for First Class Specialty Care
A new home for the DMC Cardio Team One physicians for non-invasive procedures, the DMC
Cardiovascular Institute and Outpatient Ambulatory Center, will have four floors and 120,000
square feet of space for specialty services. The first floor will be used for non invasive cardiac and
vascular procedures including vascular testing, echo cardiology, stress testing, nuclear cardiology and
EKG services. The second floor will house an outpatient surgery center and the third and fourth
floor will house specialty physician clinics.
The procedure areas of the Cardiovascular Institute (CVI) are located on the Ground Floor of
Harper Hospital. The pre- and post- procedure areas are undersized and not able to handle the
current number of patients much less accommodate the continued growth of CVI. The Group
Floor Redesign provides for additional patient and family waiting areas along with movement of an
angiography suite to provide space for an additional cardiac cath lab.
In addition to developing better space to support the needs of cardiac patients the redesign plan
will also provide better patient and family space for other procedure areas on the Ground Floor
including: radiology, endoscopy, nuclear medicine and angiography.
Total DMC Harper/ Hutzel Hospitals and Cardiovascular Institute Estimate:
$136,390,000
DMC Cardiovascular Institute and Outpatient Specialty Building
DMC Rehabilitation Institute of Michigan
Renovate and Reopen Sixth Floor Patient Unit
DMC Rehabilitation Institute of Michigan sixth floor patient rooms need to be 100 percent
handicap accessible for our patient population.
The renovation will provide for 100 percent barrier-free private baths with showers.
Renovation will include upgrades for new electrical and mechanical systems for greater efficiency.
Nursing and physician work area will be updated for increasing space demands and new
rehabilitation space will be located on the patient units.
Total DMC Rehabilitation Institute of Michigan Estimate: $2,850,000
BEFORE
AFTER
DMC Sinai-Grace Hospital
Dramatic Upgrades to More Than Double ED Treatment Space
DMC Sinai-Grace is a Level II Emergency Department that treats more than 87,000 patients
annually in an ED that was built in 1980’s to serve 50,000 patients. DMC Sinai-Grace Emergency
Department visits have increased 45 percent in the past 5 years.
AFTER
The current Emergency Department has 46 patient beds and 2 resuscitation rooms, yet sees an
average 1,600 patients per week.
Expanding Sinai-Grace’s Emergency Department will provide:
• More space to treat the increasing volume of trauma cases and patients with medically complex conditions;
• A significantly improved patient care environment that will be safer, more private, and more accessible and comfortable for patients and their families;
• More space to accommodate the new medical technology in emergency medicine; and
• Greatly improved educational and training space for students and residents.
BEFORE
DMC Sinai-Grace Hospital
Expanding Space with 60,000 Sq. Ft. for
Patient Care Specialty Services
DMC Sinai-Grace Hospital’s current footprint does not allow for adequate space for all
clinical services. The new Sinai-Grace Hospital Ambulatory Building will be three stories and
60,000 square feet of much needed space for high volume outpatient services. The building will
house an urgent care clinic, procedure areas and specialty clinics.
Additional projects include increasing the number of ICU beds and relocating the Radiology
Department next to the newly renovated Emergency Department.
Improving the Main Hospital Façade
The Sinai-Grace façade exterior needs a new facelift. The energy-wasting single-pane windows from
1939 and aging architecture are in dire need of upgrades.
Patients and their families complain the rooms are too old in the winter and too hot in the
summer.
The renovation will include a new Sinai-Grace exterior with an entirely new window system and
new exterior panel system for patient comfort and building efficiency. Additionally a new entry
area will be constructed for easier patient access and way-finding capabilities to hospital services
and clinical areas.
Total DMC Sinai-Grace Hospital Estimate: $77,700,000
DMC Sinai-Grace Hospital Ambulatory Building
DMC Huron Valley-Sinai Hospital
Expanding Private Patient Rooms
In 2008 and 2009, two new competing hospitals - Providence Park and Henry Ford West
Bloomfield opened in the DMC Huron Valley-Sinai Hospital market. Both of these new hospitals
are 100 percent private rooms.
AFTER
In 2008, the DMC Board approved the construction of a new medical office building (MOB) on
the HVSH campus. The intent was to relocate hospital services to create space for the construction
of additional private rooms and additional ICU beds to meet market demands.
The project will create 40 new private rooms.
The ICU will be expanded by six beds to meet patient demands.
Total DMC Huron Valley-Sinai Hospital Estimate: $10,800,000
BEFORE
Who is Vanguard Health Systems?
Vanguard Health Systems, based in Nashville, Tennessee, is an investor-owned hospital company with 15
facilities in four large urban markets in the country. Founded in 1998, we provide capital access, thought
leadership and the benefits of national scale to health care delivery systems. Health care is personal and local
and therefore Vanguard’s regional systems carry local brands and reflect the heritage and culture of their local
markets.
The company’s mission is to help people in the communities we serve achieve health for life. This mission
means our company is focused far beyond just the care we provide in our hospitals; rather we are active in
identifying and delivering solutions for the overall health needs of community. At Vanguard, we believe in
the mission of providing health care to everyone and we act on that belief. We provide funding to local
charitable foundations and activities, and our hospitals address important issues affecting surrounding
neighborhoods. Our ultimate goal is to develop systems that offer comprehensive health services for the
communities we serve and to be a visible corporate leader in those communities.
How would the DMC/Vanguard Partnership be Structured?
Vanguard Health Systems will acquire the DMC system, which will become Vanguard’s Michigan subsidiary
(Vanguard currently operates subsidiaries in Arizona, Illinois, Texas, California, and Massachusetts).
DMC operations will be overseen by a Michigan subsidiary advisory board made up of 4 members
appointed by Vanguard and 3 members appointed by DMC Board.
DMC will continue to operate under our historic names. The current management team will remain
in place.
Vanguard will invest $850 million in DMC hospitals for capital and equipment in the next 5 years, with
$800 million being spent in the City of Detroit.
Employees will continue in their same jobs and their seniority, pay, and benefits will be protected.
All union contracts will be honored.
The Difference between Non-Profits and Investor-Owned For Profits
As Detroit has seen all too well, non-profit hospital systems today are very much bottom-line driven. 14 hospitals
have been closed in Detroit over the last 20 years, all by non-profits, many of whom built new hospitals in
the suburbs.
Non-profits have some financial advantages, such as not paying taxes.
The biggest disadvantage of a non-profit is that it has no investors. To raise money for modern facilities, a nonprofit has only two choices: get donations or borrow. With what happened on Wall Street in 2008, DMC has
no ability to borrow. Donors in Detroit are overburdened. If DMC remained non-profit, we had no ability to
modernize our hospitals for years to come.
By becoming investor-owned for profit, we can partner with an investor who believes in DMC, the City of Detroit,
and our future. Vanguard is willing to invest $850 million into our hospitals because they believe we can create a
medical system that rivals the Cleveland Clinic right here in Detroit. If they are right, new patients and new jobs
will return to the DMC campus in record numbers. At a time when other investors are leaving Detroit, Vanguard
has chosen to bet heavily on DMC’s future success. With our track record the last six years, we think they are
making a good bet.
Vanguard’s Commitment to DMC’s Historic Mission
Vanguard is unique in that it is a national investor-owned system whose strategy has been to acquire hospital systems in urban areas and to treat everyone, regardless of ability to pay. Vanguard currently operates hospitals in San
Antonio with higher rates of uninsured patients than DMC. They’ve been successful while embracing this mission.
Vanguard has made several contractual commitments in the contract with DMC:
• To continue operating our hospitals for a minimum of 10 years
• Not to sell any hospital for a minimum of 10 years.
• To provide charity care under DMC’s historic policies for a minimum of 10 years.
• To support fully DMC’s education mission and to honor all educational contracts, including those with WSU and MSU.
• To support DMC’s research mission and to honor the NIH Perinatal Research Branch contract.
• To support the DMC’s partner Karmanos Cancer Center and to honor all contracts with Karmanos.
• To fully support DMC’s Supplier Diversity Program to provide opportunities for minority-owned, women-owned and Detroit-based businesses.
• To operate DMC as a Detroit based system and to maintain its regional headquarters in the
City of Detroit.
• To honor all historic donor naming agreements for facilities or programs.
What happens next?
The DMC and Vanguard have signed a non-binding letter of intent. The parties expect to have a formally binding
contract by June 1, 2010. That contract is conditioned on a Wayne County Renaissance Zone receiving state, city,
and county governmental approval. Once the Binding Contract is signed by June 1, 2010, the agreement is
reviewed by the Michigan Attorney General to verify that Vanguard is providing fair value to the community.
Once Attorney General approval is received, DMC would formally become part of the Vanguard system, making it
one of the five largest private health care systems in America.

A New Partnership

Transcription

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