Spectrumreportedthat Beaumonts operations already have racked up nearly $100 million in losses. Fox isnt the only hospital executive looking to exploit the perception that the unvaccinated are responsible for wreaking havoc. Yet the, Nessels do nothing stance on healthcare matters is in sharp contrast to her Massachusetts counterpart Maura Healey, who has moved to block the expansion of Massachusetts General Brigham on the grounds it will lead to, Former California Attorney General Xavier Becerra won a $575 million landmark settlement against Sutter Health for using the market dominance it obtained through a series of mergers to illegally drive-up prices. Eight will come from Spectrum, including Freese. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. By Eric Starkman. Fox has a change of control clause in his contract, meaning he will likely receive a lucrative exit package. That resulted in Beaumont staff nurses working alongside nurses getting paid considerably more money doing the same job, prompting more staff nurses to leave. Reach Eric Starkman at: eric@starkmanapproved.com. Starkman: Beware! Fortunately, Freese Deckers western Michigan businesses were healthy enough to allow Spectrum to eke out an operating profit of $119.7 million despite Beaumonts losses. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. That wasnt entirely true. Beaumont has signed a letter of intent to merge with Spectrum Health, a Grand Rapids-based hospital network focused on Western Michigan, the company announced internally Wednesday. That's bad news for Metro Detroit's biggest hospital system. Spectrumissued a statement to MiBizabout the disastrous financials reminiscent of the spin Fox served up during his seven-year tenure. Henry Ford Hospital announced this week that it was closing 120 inpatient beds systemwide due to staffing shortages. Reach Eric Starkman at: eric@starkmanapproved.com. Beaumont Troy is a Level II and must also be prepared to handle a wide range of emergencies. Beaumont Royal Oak is a Level I regional hospital, which according to the American Trauma Society means it is required to have 24/7 staffing available to provide total care for every aspect of injury from prevention through rehabilitation. Funny we only now are learning just how badly Fox ran Beaumont into the ground. Beaumont is offering all its nurses systemwide an additional $45 to $50 an hour bonus to work beyond their assigned shifts, an additional $15 an hour for techs. Fox took his marching orders from John Lewis, a retired Comerica executive who came from Oakwood and was named chairman of the combined organizations. 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. Beaumont nurses and nurse anesthetists quit in droves, joining staffing agencies that paid them more money and ensured them better working conditions. As an example of their power and influence, they have managed to derail enforcement of rules the Trump Administration issued requiring hospitals to be transparent about their prices. . Beaumont CEO John Fox is headed for the door Friday. 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. 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? The companys chief revenue officer left earlier this month. Beaumont was once mostly staffed by highly skilled veterans, among the best in healthcare. Former California Attorney General Xavier Becerra won a $575 million landmark settlement against Sutter Health for using the market dominance it obtained through a series of mergers to illegally drive-up prices. To support Deadline Detroit's independent. Freese Decker should be fired. The courage it took for Freed to write and post a letter questioning the judgment of Spectrums board and reminding them of their fiduciary responsibilities cannot be emphasized enough. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Its near impossible to put a positive spin on a critical and passionate letter written by a former top executive who played a major role transforming Spectrum into a western Michigan powerhouse. Despite the pandemic, which has forced Spectrum to call for military assistance to support its flagship hospital, CEO Tina Freese Decker recently disclosed that shes been focused on integrating Spectrum and Beaumont, creating Michigans biggest hospital system as well as the biggest employer. So What? Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. This is a good time to give a shoutout to former Beaumont chair John Lewis, who at the end of the day bears the greatest responsibility for the hospital systems decline. Beaumont does not have a good reputation regarding how they treat employees. The anesthesiologists did this while earning a fraction of their . Typically, when deals of these sorts are announced, the CEO of the acquired company pays lip service to being committed to ensuring a smooth transition and promises to stick around and lend their full support. More importantly, I doubt that Spectrums doctors would feel the need to circumvent management in the first place. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Starkman: Why Beaumont's John Fox Could Haul More Than $30 Million Back to Atlanta Tweet Share February 02, 2022, 4:58 PM Beaumont CEO John Fox The writer, a Los Angeles freelancer, is a. It comes as no surprise that Spectrums takeover received the green light. Beaumont, consistent with its practice of putting a spin on undesirable news, notified employees that it is making "good progress" toward . Susan Grant, the chief nursing officer for all of Beaumont, has her primary home in Atlanta. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Terms of the deal arent disclosed, likely because Spectrum is gaining control of Beaumont and its $3.5 billion reserve for next-to-nothing, and possibly paying nothing at all based on Foxs previous deal making. He said the expansion would involve a lot of local planning in terms of where these bed towers are located, which seemingly indicates that Beaumont is planning to expand its real estate footprint. ER sources at Royal Oak and Troy say Covid patients account for a small percentage seeking emergency treatment. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. 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. Said a veteran Troy ER source: Ive never seen anything like this in all my years of nursing. February 02, 2022, 4:58 PM . Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Fox that year was paid $5.9 million. Freese Decker this week toured Beaumont Troy Hospital, and notably neither Fox nor COO Carolyn Wilson were in tow. The silence is understandable. Although we are facing these current financial headwinds, we are confident we will continue to deliver effectively and successfully on our mission in the communities we serve in Michigan.. Spectrums CEO Freese Decker joined Spectrum in 2002 as an administrative fellow, a program designed to train masters level graduates the administrative aspects of a healthcare facility. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, AG Dana Nessel and Gov. Spectrums management is rightfully proud of the people who they are ultimately accountable to because directors bios and photos are featured on the companys website. She never followed up with a comment. Its a no-brainer to understand why Fox desperately needs to pull off the Spectrum merger. 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. Indiana University Health has 16 hospitals and 36,000 employees. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Tina Freese Decker, Spectrum president and CEO, a month membership or a one-time donation, 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, Andy Levin Goes After Amazon's Union Busting in Alabama, but Silent About Beaumont. If there was an annual award for the healthcare industrys biggest chump, I defy anyone to propose a more worthy recipient than Tina Freese Decker, CEO of Grand Rapids-based Spectrum Health. The Freep quoted Oakland University dean of nursing Judy Didion as saying it will take about a year to build the infrastructure until the school can begin to admit additional students. Under Susicks leadership, Beaumont Royal Oak precipitously declined, and internally she was viewed as a Fox sycophant. Fox trumpeted the deal as a win for Southeastern Michigan because he said Advocate Aurora would invest $1 billion to move the William Beaumont Medical School in Rochester to the Royal Oak campus and upgrade Beaumonts technology. Ive been looking for the past week and have not located them. Given that a survey of Beaumont doctors revealed last year they had no confidence in Fox, Wilson, and chief medical officer David Wood Jr., recruiting top quality executives to Beaumont is a near impossible challenge with Fox and Wilson at the helm. Corewell Health has appointed Dr. Daniel Carey as the new president for its Beaumont Hospital campus in Royal Oak. Even when Fox announces a merger deal with Spectrum, theres still no guarantee it will go through. Based on Foxs history, its quite possible it will be terms that most benefit him. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, A Zoom video conference call that was leaked this week, a month membership or a one-time donation, 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 Health's Merger Partner Reveals its Disingenuous, Deceptive and Disrespectful Nature, Spectrum Healths Black Employees Explore Class Action Lawsuit Alleging Systemic Racism, Beware! "Our staff must care for those unvaccinated individuals who become extremely ill with the Covid Delta variant, or other variants, and try to balance all the other patients coming in with medical emergencies. Spectrums takeover of Beaumont was a deal that should never have been allowed. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. A lifelong Michigander with an impressive background, Barbee resigned in October to join Indiana University Health as head of HR. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. Support our reporting and commentary by becoming a Deadline Detroit member for as little as $3 per month. Nessel also has made that claim. Gretchen Whitmer were silent. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. The combined Spectrum and Beaumont operations will temporarily be called BHSH System. In June of last year Fox announced he planned to merge Beaumont into Advocate Aurora, a Chicago-based hospital network whose CEO was on record as having insatiableambitious plans. Confidentiality is assured. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. View Comments. By Eric Starkman. By Eric Starkman During the Covid pandemic, a hospital's safety practices are more. 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. This is Beaumont's latest attempt to merge with another hospital . 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. Lina Khan of the Federal Trade Commission, Hospital prices in southeastern Michigan are among the lowest in the country, so one would have to be incredibly nave to believe Spectrums claim that its takeover will lead to more affordable care. They are looking at diversity as a numbers game. Ohios AG has won a series, Today is indeed a historic day. By Eric Starkman Beaumont Health CEO John Fox has no shame. But Spectrums management is 100 percent running the show. Though Spectrum Health is a respectable hospital network run by a management and board deeply committed to the Grand Rapids area, the evidence is overwhelming that southeastern Michigan residents wont ultimately benefit from the deal. 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. The nursing scholarship wont alleviate Spectrums immediate nurse staffing issues. Most of Foxs senior management team has departed, and hes expected to leave once the takeover is completed and he receives the millions of dollars likely owed to him under his golden parachute agreement. The scuttlebutt around town is that Beaumont directors believe that a merger is the only way to get rid of Fox. 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. Beaumont spent nearly $2 million on union busters when nurses at the Royal Oak hospital attempted to organize in 2019. Hiring nurses for Henry Fords flagship Detroit hospital is a more formidable challenge because some candidates fear working in Detroit. 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. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. Theres no prestige working at Beaumont anymore. Spectrum has also been embroiled in controversy that made national news. To the distaste of the pediatric heads colleagues, Susick walked him out of the hospital in front of his staff. Spectrum and Beaumont are technically merging because the board of the combined companies will have near equal representation and Beaumont chair Julie Fream will serve as chair of the BHSH. Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. The Chief People Officer position is listed as open, indicating that Ries isnt getting the top HR job at BHSH. 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. As a result, patients requiring hospital admission must remain in the ER, diverting beds and staff normally dedicated to treating emergencies. Seven Failed Beaumont Directors Will Serve on Board If Spectrum Merger Gets Approval Tweet. 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.. Spectrum reported that Beaumont's operations already have racked up nearly $100 million in losses. I'm officially declaring Beaumont CEO John Fox, the Atlanta carpetbagger whose greed and mismanagement destroyed Metro Detroit's biggest hospital system and put the health and safety of areas residents at risk, "The Cookie Monster." 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. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. Reach Eric Starkman at: eric@starkmanapproved.com. It should give Grand Rapids residents cold shivers that the chair of Spectrum is Julie Fream, who was vice chair of Beaumont when Fox destroyed the hospital system's once nationally vaunted reputation. A company is headquartered where the CEO is based. The metric that matters most is quality of patient care. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Michael Freed doesn't "see any value in this merger. Instead, thanks to aggressive cost cutting and other misguided decisions by Fox and COO Carolyn Wilson, Beaumont imploded. Six months into Freese Decker's acquisition of Beaumont Health from former controversial CEO John Fox, metro Detroit's biggest hospital system is suffering from a pandemic of red ink. 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. Thats how Beaumont ended up in the sorry state that it did. Spectrums prices are higher than Beaumonts, as the hospital network has significantly less competition in western Michigan. 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. By Eric Starkman. Combining Spectrum with Beaumont would be akin to Target, whose management is respected and its brand has a loyal following, merging with Macys, a troubled chain whose flagship store in midtown Manhattan has lost its luster much like Beaumont Royal Oak. In quickly reviewing Spectrums website and news releases, I can't find evidence that Freese Decker has expressed the belief that Spectrum needed to achieve considerable size to survive and remain competitive. I dont see any value in this merger, Freed says of the marriage deal Spectrum and Beaumont jointly announced last week. Beaumont spokesman Mark Geary ignored a request for comment. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Beaumonts flagship Royal Oak hospital only garnered a four-star rating and its other hospitals earned two-and three-star ratings. Share. I dont know how we could handle a catastrophe, said a source at Royal Oaks ER. Nonprofit hospitals are supposed to manage their investments conservatively, opting for boring short-term duration bonds and other low risk investments. Giving some of them oversight over a considerably bigger hospital system is reckless and irresponsible. Reach Eric Starkman at: eric@starkmanapproved.com. 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. Beaumont spokesman Mark Geary ignored a request for comment, which he typically does. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. An additional director will also be named. Fox and Wilson could possibly be given lucrative ceremonial or consulting roles, which would antagonize Beaumonts rank-and-file because both executives are widely despised. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. Consultants are part of the . And there is no mention of what, if any, role Beaumont COO Carolyn Wilson will play after the merger. Understandably, Spectrum is a more profitable hospital system, but its profits also are bolstered by its lucrative Priority Health insurance arm. He's even willing to. Fox, who owns homes in Atlanta and North Carolina, cant be bothered to even create the appearance that he cares about Beaumonts future. A responsible board would have fired Fox months ago and brought in an interim CEO with strong ties to southeastern Michigan to try and stabilize the place. Spectrums four-person communications team also ignored a request for comment. Beaumont Royal Oak in the past 18 months has lost more than a dozen prominent surgeons, half of its fellowship trained anesthesiologists, more than 50 nurse anesthetists, and dozens of nurses. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. 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