MSU's College of Osteopathic Medicine could become the new owner of a Detroit hospital — no purchase necessary.

St. John Health System, a group of nine Detroit-area hospitals, is offering to give away its Detroit Riverview Hospital in an attempt to gain federal funding for the hospital, as the facility provided millions of dollars in uncompensated care last year to those who could not afford it.

MSU would become the third university in the state, after the University of Michigan and Wayne State University, to own a hospital facility.

If MSU accepts the gift, the hospital would become a state-owned institution that would receive federal money — an estimated $14 million, said Debbie Reinheimer, corporate director of public relations for St. John Health System.

This money would help alleviate some of the hospital's debt. The hospital system lost $140 million last year from charity care and Medicaid shortfalls, among other reasons, she added.

Reinheimer refuted a previous published report that stated Detroit Riverview Hospital provided $23 million in uncompensated care last year — the number is $20 million, she said.

The proposal comes at a time when the college is searching for a location to construct a satellite campus on the east side of the state, but both university and hospital officials said the projects are independent of each other.

"Whether or not the satellite campus will be located there has nothing to do with the decision about the hospital," said William Strampel, dean of the College of Osteopathic Medicine.

However, it could increase the chances St. John Health System becomes the school's primary choice for a new teaching facility in Detroit.

There are four possible partners for the project, including Macomb Community College, Oakland University, St. John Health System and Detroit Medical Center. Albert Lorenzo, president of Macomb Community College, said through a spokesperson Monday that St. John's proposal won't affect the group's chances of becoming a partner.

"We have submitted our proposal, and it's basically up to MSU," Lorenzo said. "The decision of St. John doesn't impact us at all as far as what their bid entails."

Oakland University officials echoed Macomb Community College's comments.

MSU officials said no decisions have been finalized.

"The bottom line is it requires a lot more in-depth discussion," Strampel said. "This is not something we're ready to rush judgment on."

News of the proposal was a surprise to one MSU administrator.

Trustee Donald Nugent said the first time he heard about it was at the board's work session meeting last week.

"On Thursday, it was brought to our attention that St. John's facility was an option," Nugent said. "We're just not ready to say. It's just one additional option to consider.

"It's not a critical issue for there to be a hospital. We already have hospitals we send our students to."

He said while the proposal might benefit students, picking up "negative liability" with the hospital creates a situation with "unique pluses and negatives."

But Strampel said the MSU Board of Trustees "had been advised about this a month or so ago."

Although Detroit Riverview Hospital would become a university- and state-owned institution if the proposal passes, St. John Health System would still manage the facility and MSU would be charged a management fee.

Reinheimer said the $6 million shortfall between the federal funding and losses from uncompensated care could easily be made up by hospital profits.