The Detroit Medical Center has been going through hard financial times, and has talked about closing various hospitals, including the facility which houses the Karmanos Center patient treatment center.
Bill Blaul, VP of industrial relations for the institute, said it would be a win-win situation if Karmanos could work out a purchase arrangement for the floors it uses. "We have approximately 130 beds on multiple floors of the building," Blaul told GlobeSt.com. "We are currently in very friendly, amicable discussions with the DMC."
Such negotiations have been going on since 2001, Blaul said, but the recent finance trouble pushed up the potential deal. Currently, the institute is partnered with the DMC Cancer Hospital for the space. The institute has already put in up to $40 million into the facility, and operates most of the facility, on behalf of the hospital.
The institute could pay money to take over ownership of the hospital operations and those floors used, Blaul said. Ownership of the facility could bring in some benefits, Blaul said. "If we own and operate, that sets the stage for significant fundraising opportunities, and we would potentially qualify for reimbursement rates from the federal government for services. It really puts us in a better financial position," Blaul said.
Selling the facility would provide needed revenue for the DMC, Blaul said. He also explained he could not say the amount of the purchase offer. "We're looking at various purchase options," Blaul said.
The institute is one of two cancer centers in the state of Michigan, and one of 39 in the country.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.