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After court-ordered mediation failed last month between McLaren Health Care Inc. and Detroit Medical Center in a contract dispute over McLaren's acquisition last December of the Barbara Ann Karmanos Cancer Institute, the two health care systems are headed back to Oakland County Circuit Court to settle their problems.
But two weeks ago, DMC officials said they mailed a letter to Flint-based McLaren that included an offer to buy back Karmanos, located on the DMC campus in downtown Detroit.
McLaren spokesman Kevin Tompkins, in an email to Crain's, said Karmanos is not for sale.
"McLaren Health Care has not received nor is it aware of any offer made by the DMC to purchase Karmanos," Tompkins said. "Karmanos Cancer Institute is a subsidiary of McLaren Health Care and is not for sale."
Conrad Mallett Jr., DMC's chief administrative officer, said DMC's letter to McLaren also contained a request for McLaren to give it an audited financial report of Karmanos and McLaren.
"There is a clause in the contract (between DMC and Karmanos) that says every year Karmanos will give us audited financial report to demonstrate if not more than 5 percent of their business...