Detroit Medical Center to Acquire OmniCare

Apr 03, 2001, 01:00 ET from Detroit Medical Center

    DETROIT, April 3 /PRNewswire/ -- The Detroit Medical Center (DMC)
 confirmed today that OmniCare Health Plan of Michigan (OmniCare-Michigan) will
 become a wholly owned subsidiary of DMC subject to due diligence and
 regulatory approval.
     "Our acquisition of OmniCare-Michigan is good news for patients,
 physicians and the DMC," commented Dr. Arthur T. Porter, President and CEO of
 DMC.  "This agreement streamlines the delivery of healthcare by bringing
 patients, physicians and financial resources closer together."
     "The agreement is a win-win situation," said Gregory H. Moses, Jr.,
 president and CEO of OmniCare-Michigan.  "It means OmniCare-Michigan will have
 closer ties with Wayne State University School of Medicine and such renowned
 facilities as Harper University Hospital, Sinai Grace, Huron Valley Sinai
 Hospital, Children's Hospital of Michigan, Hutzel Hospital, Barbara Ann
 Karmanos Cancer Institute, Kresge Eye Institute and the Rehabilitation
 Institute of Michigan."
     Both entities are strongly committed to the Medicaid population.  DMC is
 the region's largest provider of health care to Medicaid patients.  OmniCare-
 Michigan, with 67,000 Medicaid members, is the region's largest HMO serving
 Medicaid patients.  It also serves 32,000 commercial members.
     "This consolidation means a correction of OmniCare's current capital
 deficiencies and strong ongoing financial support," said Michigan's Financial
 and Insurance Services Commissioner Frank M. Fitzgerald.  "A tremendous amount
 of team work went into this effort and I think the result is a health plan
 that will serve the community well."
     "We are pleased to see this improved access to quality health care for the
 citizens of southeast Michigan," said Michigan Department of Community Health
 Director James K. Haveman, Jr.  "Health care coverage for Medicaid
 beneficiaries will be uninterrupted and I commend DMC and OmniCare for working
 together to ensure a smooth transition."
     "This transaction is consistent with our mission and further strengthens
 our relationships with our major stakeholders -- the community, our physicians
 and the state," said Lloyd Semple, chairman of the DMC Board of Trustees.
     DMC operates seven hospitals, two nursing centers and more than 100
 primary care practices throughout the region.  It has approximately 3,000
 affiliated physicians and serves as the teaching and clinical research site
 for Wayne State University.
     OmniCare-Michigan was the first HMO in the state to become federally
 qualified and the first HMO in the country to structure itself on what is now
 called the network model, to capitate services by affiliated physicians, and
 to create and implement a capitated mental health system.
     This consolidation, built upon a strategic alliance formed last May
 between DMC and OmniCare-Michigan, continues the consolidation trend within
 Detroit's health care landscape.
     A team led by Dr. Porter and Semple has been established to complete the
 consolidation.  The team consists of Moses, DMC Chief Legal and Administrative
 Officer Conrad Mallett Jr. and DMC Chief Financial Officer Nick Vitale.  They
 will work closely with Commissioner Fitzgerald to make sure that the
 consolidation plan addresses all relevant organizational, governance,
 management, operational, financial and regulatory compliance matters.  The
 consolidation agreement is subject to final state regulatory approval.
 
 

SOURCE Detroit Medical Center
    DETROIT, April 3 /PRNewswire/ -- The Detroit Medical Center (DMC)
 confirmed today that OmniCare Health Plan of Michigan (OmniCare-Michigan) will
 become a wholly owned subsidiary of DMC subject to due diligence and
 regulatory approval.
     "Our acquisition of OmniCare-Michigan is good news for patients,
 physicians and the DMC," commented Dr. Arthur T. Porter, President and CEO of
 DMC.  "This agreement streamlines the delivery of healthcare by bringing
 patients, physicians and financial resources closer together."
     "The agreement is a win-win situation," said Gregory H. Moses, Jr.,
 president and CEO of OmniCare-Michigan.  "It means OmniCare-Michigan will have
 closer ties with Wayne State University School of Medicine and such renowned
 facilities as Harper University Hospital, Sinai Grace, Huron Valley Sinai
 Hospital, Children's Hospital of Michigan, Hutzel Hospital, Barbara Ann
 Karmanos Cancer Institute, Kresge Eye Institute and the Rehabilitation
 Institute of Michigan."
     Both entities are strongly committed to the Medicaid population.  DMC is
 the region's largest provider of health care to Medicaid patients.  OmniCare-
 Michigan, with 67,000 Medicaid members, is the region's largest HMO serving
 Medicaid patients.  It also serves 32,000 commercial members.
     "This consolidation means a correction of OmniCare's current capital
 deficiencies and strong ongoing financial support," said Michigan's Financial
 and Insurance Services Commissioner Frank M. Fitzgerald.  "A tremendous amount
 of team work went into this effort and I think the result is a health plan
 that will serve the community well."
     "We are pleased to see this improved access to quality health care for the
 citizens of southeast Michigan," said Michigan Department of Community Health
 Director James K. Haveman, Jr.  "Health care coverage for Medicaid
 beneficiaries will be uninterrupted and I commend DMC and OmniCare for working
 together to ensure a smooth transition."
     "This transaction is consistent with our mission and further strengthens
 our relationships with our major stakeholders -- the community, our physicians
 and the state," said Lloyd Semple, chairman of the DMC Board of Trustees.
     DMC operates seven hospitals, two nursing centers and more than 100
 primary care practices throughout the region.  It has approximately 3,000
 affiliated physicians and serves as the teaching and clinical research site
 for Wayne State University.
     OmniCare-Michigan was the first HMO in the state to become federally
 qualified and the first HMO in the country to structure itself on what is now
 called the network model, to capitate services by affiliated physicians, and
 to create and implement a capitated mental health system.
     This consolidation, built upon a strategic alliance formed last May
 between DMC and OmniCare-Michigan, continues the consolidation trend within
 Detroit's health care landscape.
     A team led by Dr. Porter and Semple has been established to complete the
 consolidation.  The team consists of Moses, DMC Chief Legal and Administrative
 Officer Conrad Mallett Jr. and DMC Chief Financial Officer Nick Vitale.  They
 will work closely with Commissioner Fitzgerald to make sure that the
 consolidation plan addresses all relevant organizational, governance,
 management, operational, financial and regulatory compliance matters.  The
 consolidation agreement is subject to final state regulatory approval.
 
 SOURCE  Detroit Medical Center