DMC Awards $60M In Construction Contracts

The Detroit Medical Center Tuesday announced plans to begin $300 million in renovations and new construction projects just days after closing the purchase agreement with Vanguard Health Systems.

DMC CEO Mike Duggan says the E.R. unit at  Sinai Grace Hospital will be enlarged and by the fall construction on a new $43 million outpatient pediatric specialty center at Children's Hospital of Michigan will begin.

"Friday, we closed the deal... Tuesday, we're moving on with our live. And, I'm happy to say, that with the announcements today, we are going to be changing the face of healthcare in southeast Michigan," Duggan said.

Duggan told reporters Tuesday that the projects are just the start under the Vanguard partnership. "Eight contacts are being awards -- that's going to transform the DMC," he said.

DMC also plans to renovate Detroit Receiving Hospital's operating room and build private rooms at Huron Valley-Sinai Hospital.

The contracts are the first of $500 million in construction deals. It's been about 30 years since the medical center's midtown campus has seen major upgrades. A $110 million cardiovascular building in midtown is also among the projects.

The for-profit Vanguard took over the eight-hospital system Saturday, acquiring substantially all its assets for about $365 million. Vanguard also assumes the health system's liabilities other than bonds.

The Associated Press contributed to this report.