Seven-hospital Detroit Medical Center has filed a letter of intent seeking certificate-of-need approval to purchase 56-bed Madison Community Hospital in suburban Madison Heights and to convert the facility into a 36-bed orthopedic hospital. It would maintain the hospital's inpatient psychiatric unit. The conversion would be completed in September, pending CON approval from the Michigan Department of Community Health. The DMC, which lost more than $200 million on operations in 1998 and 1999 combined, and about $34 million in 2000, is near completion of a financial turnaround. The system lost $5.9 million on operations in 2001, excluding a one-time, $66.2 million charge for care given to patients of OmniCare Health Plan, now in court-ordered rehabilitation. As part of its turnaround, the DMC unloaded the money-losing Medicaid HMO, sold unprofitable physician practices, eliminated 4,700 jobs and outsourced its information system.
Revitalized Detroit Medical Center to buy hospital
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