Vanderbilt University and Medical Center take next steps in transitionDec. 14, 2015, 3:58 PM
Vanderbilt University and Medical Center filed documents related to their transition to two separate legal and financial entities with the Tennessee Attorney General Dec. 14. The filing is required under the Public Benefit Hospital Sales and Conveyance Act of 2006. The university also will publish notice of the pending transition in local media, as required by the act. The Attorney General’s review period is 45 days, which may be extended by an additional 30 days if necessary.
The filing with the Attorney General outlines the transaction that will take place between the university and the Medical Center to establish the Medical Center as a separate, nonprofit entity. The transaction is structured to preserve and enhance the public mission of the university and the Medical Center and to ensure the continued viability and success of both institutions.
When the transaction closes, the Medical Center will acquire its business and facilities from the university. The university will retain the campus land on which Medical Center buildings are located. The university and Medical Center will remain closely affiliated in pursuit of their shared missions of education and research. The Medical Center also will continue operating as the Vanderbilt University Medical Center, under a trademark licensing agreement with the university.
The university will use the bulk of the funds received from the transaction to pay down debt it has incurred related to the Medical Center and will use the remainder for other needs related to the university’s mission.