Detroit Medical Center said late last month it will annex Sinai Hospital in northwest Detroit, Michigan's only Jewish hospital.
The deal is legally a merger, but Detroit Medical has agreed to pay for Sinai's assets by giving an undisclosed amount to a new foundation.
The foundation will be associated with the Jewish Federation of Metropolitan Detroit, the chief philanthropic body for the Detroit Jewish community. Both are not-for-profit.
Sinai reported a net loss of about $1.9 million on revenues of $293 million for fiscal 1996 ended June 30. Its assets are $245 million, compared with $1.4 billion for Detroit Medical. The medical center posted a $38 million profit on revenues of $1.3 billion in 1995.
Sinai will retain its Jewish identity and will gain five seats on Detroit Medical's governing board, which has 36 members. Detroit Medical, in turn, expects Sinai to enhance its outpatient and primary-care services.
Sinai operates 11 health centers and 35 physician offices with a strong presence in Detroit's growing western suburbs. Detroit Medical operates seven acute-care facilities including 482-bed Grace Hospital, just half a mile from 598-bed Sinai. Detroit Medical operates 45 outpatient centers and acts as the academic medical center for Wayne State University.
Sinai President and Chief Executive Officer Phillip Schaengold said it's likely services will be consolidated between Sinai and Grace. The deal is expected to close later this month.