By Eric Starkman Beaumont Health CEO John Fox has no shame. Spectrums previous head of diversity was Ovell Barbee, an African American, who Spectrum proudly announced last April was named one of the leading diversity executives in the country. The rankings are based on data compiled before Beaumont Royal Oak outsourced its anesthesia services, a controversial move linked to the death of a patient undergoing a routine colonoscopy and another patient landing in the ICU because of a pain medication overdose. Indiana University Health has 16 hospitals and 36,000 employees. I dont know how we could handle a catastrophe, said a source at Royal Oaks ER. Lewis resigned as chair just prior to Fox announcing Spectrums takeover and left the board in December. A merger of Spectrum and Beaumont must be approved by Michigan Attorney General Dana Nessel, who has shown no interest in championing healthcare issues and can be counted on to rubber stamp the deal. In its announcement to employees, Beaumont said the merged company will maintain dual headquarters in Southfield and Grand Rapids, an economically inefficient move if true but it likely isnt. He didnt address staff as folks as hes repeatedly done in the past and he looked more relaxed and rested than in previous videos. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, a month membership or a one-time donation, Beaumont Health Chair John Lewis -- Champion of CEO John Fox -- Stepping Down in June, Beaumont Manager Moved to Sabotage Anesthetists Concerns About Critical Drug Pump Shortage, Beaumonts John Fox Set to Unload Historic Bloomfield Hills Estate, Beaumont Nurse Anesthetists at Royal Oak, Troy and Grosse Pointe Vote Overwhelmingly to Unionize, Beaumont Forces Suspension of Leader of Nurse Anesthetist Union Drive, Andy Levin Goes After Amazon's Union Busting in Alabama, but Silent About Beaumont. Beaumont CEO Fox and COO Wilson Must Go Now! Freed notes that Beaumont claims to have 300 days of cash on hand but doesnt have a top-tier bond rating allowing it to borrow money at the best rates. According to one source, Beaumont at least until recently had more than 3,000 job openings. Beaumonts John Fox Is Laughing All the Way to the Bank, Beaumont Nurse Anesthetists Move to Unionize to Combat 'Unsafe' Staffing Conditions, Avoid Beaumont Like the Plague,' Warns Podiatrist Who Underwent an Endoscopy at Royal Oak Hospital, Metro Detroit Mourns Passing of 'Gentle Soul' Richard Curbelo, Medical Examiner Conducted Autopsy of Beaumont Colonoscopy Patient After Concern Raised, Remembering Richard Curbelo Who Died Undergoing Beaumont Colonoscopy, Beaumont Hospital Staffers Horrified After Patient Dies During Routine Colonoscopy, Ostriches On Beaumont Health's Board Belong at the Detroit Zoo, Henry Ford's Wright Lassiter Puts Beaumont's John Fox to Shame, Beaumont's Demise Assured as Board Ignores Calls for CEO's Firing, Prominent Beaumont Cardiologist Calls Out CEO John Fox for Deception, AG Nessel Reaffirms She's Do Nothing Dana' on Healthcare. Funny we only now are learning just how badly Fox ran Beaumont into the ground. The companys chief revenue officer left earlier this month. Reach the writer ateric@starkmanapproved.com. As a result, patients requiring hospital admission must remain in the ER, diverting beds and staff normally dedicated to treating emergencies. In his video, Fox disclosed that none of the monies for the planned expansion are being diverted from funds to deal with Beaumonts chronic staff shortages that have forced the closing of wards because there isnt sufficient medical staff to cover them. The Michigan Nurses Union vowed it would no longer seek to organize at Beaumont because of the companys climate of fear.. There are some serious issues with NorthStar Anesthesia, the Texas-based outsourcing company that Wilson bet the farm on and losing badly so far. Prioritys goal is to capture as much market share as possible and then use that power to reduce what it pays to doctors to cover their services. Soon after, Fox announced the Advocate Aurora deal. Its reasonable to assume the real reason for Freams elevation was the board knew Fox was close to inking a deal with a merger partner. How Absurd. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. Reach Eric Starkman at: eric@starkmanapproved.com. Israel relies nearly 100 percent on Pfizer vaccines, while the U.S. also has a prevalence of Moderna and J&J vaccines. Fox in January also disclosed that Beaumont planned to spend significant dollars to embark on a three to five-year plan to expand the health systems private bed capacity. Biden last July issued an executive order instructing the FTC to be more critical of hospital mergers because studies show they invariably result in higher patient costs and poorer quality of care. Spectrum, with $6.9 billion in revenues, operates 14 hospitals in the western side of the stateand has 30,000 employees. Another open position is the Chief Inclusion, Equity, Diversity and Social Impact Officer.. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. He also noted that Beaumont received Medicare advances of $505 million in 2020 that needs to be returned this year. The resignations were due to working conditions and management dissatisfaction, not Covid. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Its a standard practice when companies of near comparable size combine: The company whose CEO is tapped to lead the mergedcompany agrees to have the chairman of the partner company serve as chair. Beaumont Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Based on what was paid to the CEO of one of Beaumonts predecessor companies, Fox possibly stands to receive more than $30 million to sail into the Georgia sunset. The once proud and respected hospital system merged with two lesser ones in 2015, paving the way for Fox, who was determined to sell Beaumont from the moment he arrived. Meet Michael Freed, decidedly among the bravest persons in Michigan and one who acts on his conscience when it comes to protecting the health care of his hometown Grand Rapids community. Companies often create diversity positions for window dressing purposes. As often happens when you meld two organizations, the weaker one brings the stronger one down. Spectrums prices are higher than Beaumonts, as the hospital network has significantly less competition in western Michigan. They say waits extending six hours and beyond stem from a chronic shortage of inpatient nurses thats forced the closing of various wards. Gretchen Whitmer has paid lip service that shes committed to so-called healthcare equity, meaning that Blacks receive access to the same quality of care as whites. The only aspect of the deal worth cheering about is that Fox will finally be removed from Beaumont, but the company shouldnt have to lose its independence to make that happen. The nursing shortage in our state is a critical and complex challenge that must be solved with bold and collaborative solutions, the Detroit Free Press quoted Freese Decker as saying. View Comments. I can suspect what the problem is but, without transparency, I cant know.. Also unavailable for clarifications will be Dawn Geisert, Beaumonts former compliance chief. Beaumont Health CEO John Fox has no shame. Board chair Fream, who holds a Harvard MBA, told The Detroit News that Beaumont's board used an "independent consultant" to determine Fox's compensation. The merger talking points for Beaumonts leaders includes a commitment to improve health equity. This from a healthcare company that at the height of the Michigan pandemic last yeartemporarilyclosed Beaumont Wayne, a hospital catering to economically disadvantaged individuals with little or no insurance. September 15, 2020, 9:36 PM . Spectrum spokeswoman Ellen Bristol Wednesday morning said she would look into whether a merger was imminent, seeming to indicate Deadline Detroits inquiry was the first shed heard of a potential deal. Fox also disclosed that Beaumont has earmarked $40 million to purchase state-of-the-art beds, some of which are already being delivered. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Beaumont CEO John Fox . Reach Eric Starkman at eric@starkmanapproved.com . In his letter, Freed expresses concern that seven Beaumont directors will be named to the combined Spectrum-Beaumont board and that they could ultimately exert undue influence. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Beaumont institutionally has a very tenuous relationship with truth. Marshall is big news in Michigan these days, as the state has earmarked more than $1 billion in subsidies for Ford Motor Co. to build an electric battery plant on . Naming Fream as chairman was done for optics, an attempt to assure Southeastern Michigan residents that their interests would be protected if Spectrum and Beaumont merge. According to the most recently available filings, Freese Decker earned $3.9 million in 2018. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. It seems unlikely that Beaumont would embark on a major expansion without the input and signoff of Spectrum, which is awaiting regulatory approval to take over the faltering Southfield-based hospital system. I imagine Fox is luxuriating at one of his Atlanta or North Carolina manors laughing hysterically at the Michigan executive yahoo who took Beaumont off his hands and no doubt paid him millions as part of the deal. That wasnt entirely true. Those workforce headwinds should have been known to Freese Decker well before she took over Beaumont. So What? If Michigan had a competent attorney general or a governor with a healthcare interest beyond abortion rights, the deal would have been derailed. My sense about Spectrum is that if doctors had serious patient safety concerns and felt the need to circumvent management to get them addressed, the hospital companys board would take the matter quite seriously. Nurses employed by staffing agencies are paid more than staff nurses performing the same functions. Beaumont spokesman Mark Geary ignored a request for comment, which he typically does. Even if the executive couldnt restore Beaumont to its former glory, he or she could at least have minimized the damage and fetched a higher price for the hospital network than whatever Fox has negotiated. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. BHSH is what Spectrum calls its combined Beaumont and Spectrum operations. Confidentiality is assured. The insurance business is among the most profitable sectors in healthcare, but as anyone who has dealt with one of these companies know, their priority is profits, not patient care. Virtually all of Fox's senior management team resigned or was . A company is headquartered where the CEO is based. It marks the passing of a once great hospital system, and the creation of a giant Michigan hospital network Spectrums former CFO Michael Freed has warned could result in a massive financial loss.. After she announced the deal, former Spectrum CFO Michael Freed publicly alerted Spectrum's then board the deal could result in a massive financial loss.. Less readily understood is why Spectrum would want to do a deal. Business Starkman: Bloodbath at Beaumont - COO Carolyn Wilson and Top Doctor Ousted; Chief Quality Officer Resigns Tweet Share July 22, 2021, 12:45 PM This columnist, a Los Angeles freelancer,. Ive been looking for the past week and have not located them. A traditional Bachelor of Science degree in nursing is typically four years. Also, if you wish to support Deadline Detroit's. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Beaumont Troy also operates at a reduced capacity. By that measure Fox, Wilson, and Wood have poor performance scorecards. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? A Grand Rapids television station revealed that operating room OBGYN doctors were posting photos on social media of them holding up surgically removed organ and tissue material as part of a game they likened to The Price Is Right. The report by NBC affiliate WOODis a classic worth watching because the reporter cant believe what shes actually reporting. The merger rationale was that hospitals benefitted from getting bigger and achieving economies of scale. That's bad news for Metro Detroit's biggest hospital . That Fream will serve as chair of the board overseeing a combined Spectrum and Beaumont is a disgrace and underscores Michigans poor leadership. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. The Beaumont Health System, comprised of Royal Oak, Troy, and Grosse Pointe hospitals, was far superior and the expectation was that the merger would elevate the quality of staff and patient care at the Oakwood and Botsford hospitals. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. The anesthesiologists did this while earning a fraction of their . As Deadline Detroit recently reported, Beaumonts once-bustling endoscopy suite, where a patient died undergoing a routine colonoscopy in January, has suffered a rash of nurse resignations and can barely operate at 50 percent capacity. It comes as no surprise that Spectrums takeover received the green light. Destroying Beaumont and Spectrum Health, Covid Not Responsible for ER Debacles at Beaumont RO and Troy, Sh** Show at Beaumont Endoscopy Suite in Chaos Amid Nursing Shortage, C-Section Horror at Beaumont Lawsuit Claims Surgeon Left Sponge in Patients Abdomen, Former Spectrum CFO Trashes Beaumont Merger and Warns of 'Massive Financial Loss', Beaumont's Merger Partner Reveals its Disingenuous, Deceptive, Disrespectful Nature, Spectrum Healths Black Employees Explore Class Action Lawsuit Alleging Systemic Racism, Beware! Maybe they dont teach this at the University of Iowa from where Freese Decker received her Master of Health Administration, but when a hospital spends nearly $2 million as John Fox did to intimidate nurses at his flagship Royal Oak hospital and derailed a unionizing attempt, it creates bad blood. Spectrums board includes Doug DeVos, co-chair of Amway, whose family is among the most powerful in Michigan. Lewis previously served on the board of one of Beaumonts predecessor companies and likely didnt want to continue after Beaumont completed its merger. Spectrum is a competently run company on an upward trajectory, while Beaumont is a very damaged goods operation. Other state attorney generals have also shown a willingness to take on the powerful interests of U.S. hospital companies. Spectrum was projecting a loss of $57.1 million, which . Ohios AG has won a series of landmark settlements taking on healthcare companies. That resulted in Beaumont staff nurses working alongside nurses getting paid considerably more money doing the same job, prompting more staff nurses to leave. These contracted doctors also were responsible for setting up a Covid-19 ICU unit at Beaumont Troy. The quality of care has declined to such a degree that insiders readily admit they wouldnt entrust their families care to the hospital. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Understandably, Spectrum is a more profitable hospital system, but its profits also are bolstered by its lucrative Priority Health insurance arm. Spectrum CEO Tina Freese Decker will lead the combined company. The deal, which was announced Thursday, is still subject to various regulatory approvals. One need only look at Beaumont, an amalgamation of the Beaumont Health System, Royal Oak, Oakwood Healthcare, Dearborn, and Botsford Health Care in Farmington Hills that was created in 2014. He's even willing to. By Eric Starkman. Reach Eric Starkman at: eric@starkmanapproved.com. His chief marketing officer resigned last September, his CFO quit in March, his chief compliance officer left a few weeks ago, and his chief revenue officer is out the door in a few days. Fox said Beaumonts lack of private rooms is a large critical area that has haunted us for decades. He said a comprehensive expansion plan would be finalized by year-end. The Detroit News. The silence is understandable. Beaumont at one point claimed to have 38,000 employees, but with layoffs and unfilled positions its not clear how many employees remain. The metric that matters most is quality of patient care. Spectrum has also been embroiled in controversy that made national news. Travel nurses are also required to oversee only four patients at a time and are exempted from having to transport patients to other areas of the hospital. Its not unusual for a so-called charge or supervisory ICU nurse to have just one year of experience. Instead, thanks to aggressive cost cutting and other misguided decisions by Fox and COO Carolyn Wilson, Beaumont imploded. Beaumont is having difficulty attracting mid- and lower-level employees as well. Disgruntled Staff. Spectrum appears to have grown organically, focused on a region it knows well. ER sources at Royal Oak and Troy say Covid patients account for a small percentage seeking emergency treatment. It marks the passing of a once great hospital system, and the creation of a giant Michigan hospital network Spectrums former CFO Michael Freed has warned could result in a , Spectrum Moves Forward with Beaumont Takeover, Beaumont Expects Imminent FTC Approval For Spectrum Takeover Of Its Faltering Hospital System, Good News From Beaumont Hospital Network To Spend 'Significant Dollars' to Expand Private Room Capacity, Beaumont Foxs Thanks to Hospital Docs: Let Them Eat A Cookie., Beaumont Faces Threat of Nurse Anesthetists Strike Over Declining Patient Safety Standards, Bad News for Beaumont -- CEO John Fox Sticking Around Longer Than Expected, CEO John Foxs Michigan Legacy? Still, Beaumont is clearly going to be a financial albatross on Spectrums operations for quite some time. Lewis, the board chair, was replaced earlier this month by Julie Frehm, president and CEO of the Original Equipment Suppliers Association. He tweeted on Thursday that he was cautiously optimistic about certain aspects of the partnership. Michigan Gov. The American Hospital Association (AHA), the trade group focused on promoting the financial interests of nonprofit hospitals and their managements, is a major lobbying force in Washington. Several prominent Beaumont doctors warned the board they had serious concerns about the anesthesia outsourcing company before it took over, but Beaumonts board ignored the concerns. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. Spectrum no doubt knew that Fox was desperate to unload Beaumont, so Freese Decker had him by the cajones. The evidence is, Spectrums previous head of diversity was Ovell Barbee, an African American, who Spectrum, Many organizations are not interested in real change, Chris Metzler, the former associate dean for human resources and diversity studies at Georgetown University,, Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. Its a vicious cycle, one that I doubt Spectrum has figured out how to solve. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? To support Deadline Detroit's independent. On Thursday he posted an open letteron his LinkedIn page to Spectrums board implicitly questioning Beaumont Health's financials and warning that merging with the Southfield-based hospital network is ill advised. Henry Ford in Detroit in years past enjoyed an A safety rating. Support our reporting and commentary by becoming a Deadline Detroit member for as little as $3 per month. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Michael Freed doesn't "see any value in this merger. And given the sorry state of Beaumont resulting from Foxs leadership, its an emergency rescue. Under Freese Deckers leadership, Spectrum experienced considerable turnover of its Black employees, some of whom approached an attorney to explore whether they had cause to file a discrimination lawsuit. Spectrum also is comfortable issuing misleading or deceptive statements, so culturally Beaumont is possibly a great fit. Consultants are part of the . To support Deadline Detroit's independent. A responsible attorney general would have removed Fox, board chair Julie Fream, and the other Beaumont directors who stood idly by a long time ago. Spectrum and Beaumont are not corporate equals. Southeastern Michigan residents shouldnt look to Rep. Andy Levin to save the day. Among the benefits of the deal Fox trumpeted was a $1 billion commitment to move the William Beaumont School of Medicine from Oakland University to Beaumonts flagship Royal Oak campus and a significant increase in technology spending. To support Deadline Detroit's independent. Far from it. How Absurd. Seven Failed Beaumont Directors Will Serve on Board If Spectrum Merger Gets Approval, Beaumont CEO John Foxs Final FU to Detroit: Merger with Spectrum Health, Beaumont Health Chair John Lewis -- Champion of CEO John Fox -- Stepping Down in June, Beaumont Manager Moved to Sabotage Anesthetists Concerns About Critical Drug Pump Shortage, Beaumonts John Fox Set to Unload Historic Bloomfield Hills Estate, Beaumont Nurse Anesthetists at Royal Oak, Troy and Grosse Pointe Vote Overwhelmingly to Unionize, Beaumont Forces Suspension of Leader of Nurse Anesthetist Union Drive, Starkman: Why Tree Huggers Must Save This Small Town in Michigan From Ford, 'Detroit In Black And White:' Why We Got Kicked Off 910 AM, Randy Wimbley Leaving Fox 2 After a Decade on the Air. The evidence is overwhelming that when hospitals merge, prices go up. Financially, the pandemic was very good to Beaumont, as the hospital system pocketed an additional $1 billion for its $2.5 billion reserve kitty while furloughing and terminating hundreds of employees. But Beaumonts release last month announcing her elevation to chair to replace John Lewis provides some insight. Private rooms are increasingly critical during the pandemic because shared rooms significantly increase the number of medical staff and guests entering, thereby increasing the risk to both patients. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. When you sign the documents that will permanently change this region, your signature will forever hold you accountable for the repercussions, Freed said in a letterhe posted on LinkedIn. Its almost a mantra among Beaumont Royal Oak nurses that Henry Ford treats their nurses like royalty. Beaumont has had a contentious relationship with its Royal Oak nurses for years, prompting them to try to organize a union two years ago. Said Kevin Cawley, a Michigan health care consultant: The only possible value I could identify (for the merger) was in national and international physician recruitment, and that frankly is a stretch.. In a major blow to the hospital, Reza Dabir, Dearborns top cardiothoracic surgeon, resigned to join Ascension Health. One of the deciding factors in evaluating merging Beaumont and Spectrum will be the financial terms of the deal. The only remaining senior management executives are Grant, the chief nursing officer, and Jane Jordan, the chief lawyer, who like Grant and CEO Fox, has her primary home in Atlanta. The FTCs approval isnt certain, as President Biden has asked the agency to be more critical of mergers. Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Fox that year was paid $5.9 million. Freed was CFO of Grand Rapids-based Spectrum Health for nearly 19 years, and later headed the hospital companys lucrative Priority Health insurance arm for six years. When the Advocate Aurora deal was announced, Beaumont had a $2.5 billion cash reserve, so Advocate Aurora was essentially committing $1 billion, while retaining $1.5 billion. Spectrums due diligence team will be unable to get clarifications on Beaumonts financials from the companys CFO because it doesnt have one. According to a source, some travel nurses are being paid lucrative wages to work only three or four shifts a week. Whats becoming increasingly obvious is how Freese Decker, like John Fox, is prone to making public statements that have no basis in fact. BHSHs management team is comprised entirely of Spectrum executives, except Beaumont Royal Oak president Nancy Susick, who has been named interim president of what is being called BHSH Beaumont Health. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Six months into Freese Deckers acquisition of Beaumont Health from former controversial CEO John Fox, metro Detroits biggest hospital system is suffering from a pandemic of red ink. By Eric Starkman . Fox, who has already been paid more than $20 million in compensation since joining Beaumont in 2016, potentially stands to earn tens of millions more if regulators approve Spectrums takeover. That Fox, who along with Wilson has shown they have no commitment to southeastern Michigan, was allowed to negotiate Beaumonts fate underscores just what an irresponsible disgrace Beaumonts board is. Despite Freeds damning allegations, Beaumont spokesman Mark Geary ignored a request for comment. The list goes on. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. The reason Royal Oaks ER, Beaumonts flagship hospital, is often operating at 60 percent capacity because it doesnt have sufficient staff. Giving some of them oversight over a considerably bigger hospital system is reckless and irresponsible. In his video, Fox was wearing a pinstripe suit jacket, not his trademark blue blazer. Its not clear whether Freed knows that Beaumont CEO John Fox was among U.S. hospital executives who shouted the loudest about a looming financial crisis for the health care industry because of the pandemic. And there is no mention of what, if any, role Beaumont COO Carolyn Wilson will play after the merger. Fox isnt the only hospital executive looking to exploit the perception that the unvaccinated are responsible for wreaking havoc. The financial terms of the deal will reveal whether Freese Decker is as touchy-feely as she appears or whether she can be quite ruthless when a lucrative financial opportunity presents itself. More importantly, I doubt that Spectrums doctors would feel the need to circumvent management in the first place. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. Insiders readily admit they wouldnt entrust their families care to the hospital network has significantly less in! Also shown a willingness to take on the board overseeing a combined spectrum and Beaumont is former! Vowed it would no longer seek to organize at Beaumont because of deciding... Of a major blow to the hospital with just two cardiothoracic surgeons down!, please sign up for a $ 3a month membership or a donation! 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