Director's Corner: Wayne County Welcomes Vanguard Health Systems

Last week, the Detroit Medical Center (DMC) was purchased by Vanguard Health Systems, a private, Fortune 500 company based in Nashville, TN. Vanguard paid DMC $417 million dollars, and has promised to invest up to $850 million into the surrounding medical campus. The purchase and investment is strongly supported by DMC Chair Steven D'Arcy, businessman Roger Penske, and Wayne County CEO Robert Ficano.

Vanguard's purchase of the DMC will ensure the financial solvency of the hospital system, and it secures a long-term presence for the hospital in downtown Detroit. The expansion of the DMC campus will further strengthen Detroit's growing Midtown area, and it will create thousands of construction jobs and permanent jobs in health care. Because of the huge economic potential of this project to the immediate and surrounding Midtown area, Wayne County awarded a Renaissance Zone to support the company during its first 15 years of operation. Wayne County looks forward to receiving expedited approval of the Renaissance Zone by the Wayne County
Commission sometime next week. We are grateful for the cooperation and collaboration of the Commission and the City of Detroit in expediting the approval process.

Due to population decline in Detroit and higher costs, many DMC branches have been unable to maintain the scope of our medical services they once provided. Under the new ownership scenario, the DMC system will retain its name but will continue to receive the benefits of operating under a nonprofit model. With renaissance zone designation, Vanguard Health Systems will not only be able to preserve the presence of Detroit Receiving Hospital, but it will also expand the footprint of the DMC and its services. One of the centerpieces of the DMC's expansion plans is the construction of a new children's hospital, which will increase the number of hospital beds for children from 238 to 272. The citizens of Detroit, and particularly children, deserve higher quality medical care.

Wayne County is already Michigan's economic leader in the health care industry, and our hospitals are home to some of the best doctors in the world. Our County's health systems not only serve our immediate citizens, but we know that our region is also becoming a destination for medical care for citizens outside our region. Over the next several years, we expect the health care industry to continue to grow at a rate higher than the 6% average annual growth we have experienced over the past several years. The jobs created through this expansion are sustainable jobs given the growing demands of our population. This new investment will create a state of the art environment for health care, and through partnerships with our universities, particularly Wayne State, our region will expand as hub for life sciences.

The purchase of the DMC by Vanguard Health Systems is a historic moment in Detroit's history and one that may help define the turnaround of Detroit. New construction will create jobs for Wayne County businesses, and their sheer presence should drive new business activity in Midtown and elsewhere in downtown Detroit. We welcome Vanguard Health Systems to our region, and we look forward to the positive role they will play in the economy of Detroit and Wayne County.

Turkia Awada Mullin is the Chief Development Officer for Wayne County's Economic Development Growth Engine (EDGE)