Detroit Hospital Sale Completed, $30M Fine Levied

DETROIT (AP) -- The Detroit Medical Center has agreed to pay a $30 million fine after administrators discovered improper perks for some doctors, including special compensation, entertainment tickets and unreasonable lease deals.

The agreement was disclosed Thursday, the same day that DMC marked its sale to Vanguard Health Systems of Nashville, Tenn.
The Detroit medical center operates eight hospitals.

Medical center chief Mike Duggan says the settlement had to be complete this week or the sale "would have been dead."

The government found lease deals and independent contractor relationships that weren't in writing or conflicted with fair market value.

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