Vanguard Health Systems

Powerful Essays
A

THE DMC/ VANGUARD ACQUISITION

By Steven Malik Shelton

The Blackstone Group is a private equity firm that acquired a majority equity stake in Vanguard Health Systems with a $1.75 billion dollar investment in 2004.

According to Josh Kosman, business reporter for the New York Post, private equity firms purchase businesses through leveraged buy-outs in which the majority of the money for the acquisition comes from loading the purchased company down with debt. Kosman states that Vanguard actually borrowed the money to fund its buyout by the Blackstone Group, and “for the year ending June 30, 2008, Vanguard spent 122 million on debt payments which contribute to a 4 million dollar loss from continuing operations. If something doesn’t change, Vanguard may not be able to pay its interest and certainly won’t be able to pay its principle, which is due in September of 2011.” 1
But according to a recent article in The New York Times, (October 28, 2010) Blackstone is improving its investment portfolio by aggressively refinancing the debt of companies under its management. “More than 50 percent of the debt carried by Blackstone companies has either been refinanced at a lower cost or modified with better terms.” 2 (“Debt Fuels Private Equity Revival,” by Peter Lattman and Michael J. de la Merced. Accessible online at www.nytimes.com/2010/10/29/business/29blackstone.html)

According to a study that appeared in the Canadian Medical Association Journal, investor-owned hospitals have almost 20% higher charges than non-profit hospitals. The researchers although based in Canada, conducted their study based on data from hospitals located throughout the United States.
Dr. Steffie Woolhandler, says that for-profit hospitals show a tendency to charge higher prices for inferior care, and to skimp on nurses while spending lavishly

You May Also Find These Documents Helpful

  • Good Essays

    Marketing at vanguard

    • 1128 Words
    • 5 Pages

    Problem Definition Senior executives at Vanguard are evaluating their marketing strategy. In particular, they are looking at their approach to market segmentation, the organization of the marketing function, and the emphasis placed on marketing metrics in the corporate dashboard in light of an economic and stock market downturn. Situation Assessment Strengths · Low cost high value; extremely low advertising spending and no large sales force. · Customer focused · High morale; Low employee turnover;…

    • 1128 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    The Vanguard Group

    • 2364 Words
    • 10 Pages

    The Vanguard Group Four C Analysis Company: The Vanguard Group, headquartered in Valley Forge, PA, is the nation's second-largest mutual fund and a leading provider of company-sponsored retirement plan services. Vanguard serves come 18 million shareholders accounts and manages approximately $850 billion in US mutual fund asssets, including more than $260 billion in employer-sponsored retirement plans. Vanguard offers 130 funds to US investors and 40 additional funds in foreign markets.…

    • 2364 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Vanguard Case Analysis

    • 2454 Words
    • 10 Pages

    diversified with Vanguard ETF’s that were carefully chosen to seek the highest return with moderately aggressive to aggressive risk strategy. The investment strategy associated with this portfolio is short-term with an aggressive attitude of “more risk more reward”. 7/24 price Investment Amount # of Shares 8/13 price Value Vanguard Consumer Discretionary ETF – (VCR) 67.89 10000 147.29709 71.74 10567.0932 Vanguard Financial ETF – (VFH) 30.25 10000 330.5785 31.58 10439.6690 Vanguard Growth ETF…

    • 2454 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    Vanguard Project History

    • 2257 Words
    • 10 Pages

    science (and vice versa). The military connotations of these developments were also understood, as military review of the program noted its potential in ballistic use. It was understood that the Vanguard project’s significance lay far beyond the physical satellite it planned to place in orbit. Vanguard, by 1957, was off to a slow start. The first satellite launch facility was only built that year in Cape Canaveral, Florida (Naval Research Laboratory), and TV-2, only the third test vehicle for stage…

    • 2257 Words
    • 10 Pages
    Better Essays
  • Powerful Essays

    The Vanguard Group, Inc.

    • 884 Words
    • 4 Pages

    The Vanguard Group, Inc. Background: The Vanguard Group, Inc. is one of the most successful mutual fund companies in the United States. Vanguard is a for profit company which was found by John C. Bogle in 1974. John C. Bogle is credited with the creation of the first index fund available to individual investors, the popularization of index funds generally, and driving costs down across the mutual fund industry. Its Vanguard Index Trust 500 is the largest of the domestic funds managed by the firm…

    • 884 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Vanguard Swot Analysis

    • 363 Words
    • 2 Pages

    This case looked at the operations of the Vanguard Group, the mutual fund industries growth leader. Unlike some of its competitors, Vanguard has been able to attract and retain clients without an extensive marketing campaign. Recently there has been discussion about implementing a more direct sales marketing campaign. However, given their extremely low expense ratios and their ability to consistently outperform the industry, there are some concerns over the financial issues that would accompany…

    • 363 Words
    • 2 Pages
    Good Essays
  • Good Essays

    (1) Calculate the firm’s financial ratios for 2007: Vanguard Group 2007 financial ratios 1. Current ratio = current assets/current liabilities = 718,750/431,250 = 1.67 2. Quick ratio= (current assets-inventory)/current liabilities = (718,750-303,750)/431,250 = 0.96 3. Inventory turnover= cost of sales/average stock = 1,362,480/303,750 =4.49 4. Average collection period= (average debtors/annual credit sales)×365 = (296,250/1,680,000) ×365 = 64 days 5. Total asset turnover= annual sales/total assets…

    • 1041 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    After the three speed date presentations on Vanguard’s work with Farm Aid, the Voice Awards, and the APA, I was so impressed by the capabilities of every one of the communicators and strategies working for Vanguard. To me, all these Vanguardians seem to wear the three sets of hats of a cause consult, while everyone has different personalities and unique traits in a professional working environment. The first mini-presentation my group had was with Brittany and Sangeetha and both of them were well…

    • 447 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    English version] President Aquino's SONA 2013: Full text ABS-CBNnews.com Posted at 07/22/2013 6:38 PM | Updated as of 07/22/2013 6:38 PM State of the Nation Address of President Benigno S. Aquino III to the Congress of the Philippines, Batasang Pambansa Complex, Quezon City, July 22, 2013 [This is an English translation of the SONA delivered at the Session Hall of the House of Representatives, Batasang Pambansa Complex, Quezon City, on July 22, 2013] Vice President Jejomar Binay; Senate President…

    • 11230 Words
    • 45 Pages
    Powerful Essays
  • Powerful Essays

    MARKETING AT THE VANGUARD GROUP In light of an evolving market, faced with new competitors, and after a careful analysis of their current customers, the Vanguard Group (hereinafter referred to as “Vanguard”) realizes it must rethink its entire marketing strategy. However, in order to protect and leverage their competitive advantage, which is their low management fees, and to optimize the loyalty that their customers continuously demonstrate toward their organization, they must now target the most…

    • 2057 Words
    • 9 Pages
    Powerful Essays