How Absurd. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. The FTC is headed by Lina Khan, a Democrat appointed by Biden and sworn in last June 15 to a three-year term. An additional director will also be named. Reach Eric Starkman at: eric@starkmanapproved.com. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. Spectrum is a competently run company on an upward trajectory, while Beaumont is a very damaged goods operation. John Fox, the Atlanta carpetbagger who washed up on the shores of southeastern Michigan seven years ago to bolster Beaumont Healths profits and gussy up Metro Detroits biggest hospital network so that he could sell it, appears hes pulled off what he set out to do. After posting his letter, Freed noted on his LinkedIn page that Beaumont made $167 million from its operations in 2020, which included revenue recognition of $349 million from the CARES Act and FEMA payments for Covid. Beaumont is having difficulty attracting mid- and lower-level employees as well. 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. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. Freese Decker this week toured Beaumont Troy Hospital, and notably neither Fox nor COO Carolyn Wilson were in tow. 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. She bolted last month. 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. If (Beaumonts) operating margins are adequate, and they have plenty of cash, whats the problem? They say waits extending six hours and beyond stem from a chronic shortage of inpatient nurses thats forced the closing of various wards. The FTC has a backlog of merger applications, and it could take months before it decides on the Spectrum/Beaumont deal. Under the terms of the deal Fox negotiated, Advocate Aurora would have taken over Beaumont and its $2.5 billion reserve without forking out a penny. Freed doesnt disclose his hunch about Beaumonts financials, which received less oversight than he possibly knows. 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. April 18, 2020, 3:27 PM . Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. The nursing scholarship wont alleviate Spectrums immediate nurse staffing issues. 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. The Michigan Nurses Union vowed it would no longer seek to organize at Beaumont because of the companys climate of fear.. Fox and spinmeister Geary have a history of making statements that are deceptive and misleading, a compilation of which can be found here. Ohios AG has won a series of landmark settlements taking on healthcare companies. This is Beaumont's latest attempt to merge with another hospital . Corewell Health has appointed Dr. Daniel Carey as the new president for its Beaumont Hospital campus in Royal Oak. Its Beaumonts attempt to mislead southeastern Michigan residents that they arent losing a local institution. 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. In what will likely be his final FU to Metro Detroit, Fox will depart on Friday. Beaumont Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. It isnt clear from Beaumonts stats that the hospitals Covid patients were admitted because of the disease or possibly some other serious ailments. To support Deadline Detroit's independent. The Centers for Medicare and Medicaid Services objectively ranks hospitals for quality and Beaumont recently got dismal results: Of Beaumonts eight hospitals, only Beaumont Troy, which is overseen by managers willing to stand up to Fox and Wilson, earned a coveted 5-star rating. Beaumont spokesman Mark Geary ignored a request for comment, which he typically does. In addition to lacking a CFO and chief compliance officer, Beaumont has yet to find a replacement for its chief marketing officer, who left last September. So What? There are no bios or photos of Beaumonts other directors, and thats by intent. Working at Beaumont under Fox and his former COO Carolyn Wilson was a hellacious HR experience, and the pandemic worsened the situation. Beaumont CEO John Fox . Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Still, Beaumont is clearly going to be a financial albatross on Spectrums operations for quite some time. 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. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. According to a source, some travel nurses are being paid lucrative wages to work only three or four shifts a week. Ohios AG has won a series, Today is indeed a historic day. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. Its totally bizarre.. Reach the writer ateric@starkmanapproved.com. Spectrum and Beaumont announced today that they are moving forward with Spectrums takeover, having provided the applicable regulatory agencies with all requested information. The deadline apparently has passed for the Federal Trade Commission to challenge the deal. Companies often create diversity positions for window dressing purposes. 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. In April 2020, at the height of Michigan's pandemic, Metro Detroit's biggest hospital system called Beaumont Health without explanation closed its facility designated to treat Covid patients . Beaumont at one point claimed to have 38,000 employees, but with layoffs and unfilled positions its not clear how many employees remain. Carey has spent more than 20 years as a . A hospital CEO committed to the best interests of their organization and the communities it services would typically demand a premium of one times the annual revenue, meaning Spectrum should pay nearly $5 billion to take over Beaumont. Add in a staffing shortage, and you have a perfect storm," Fox said in a news release, urging Detroit-area residents to avoid Beaumont emergency rooms for all but critical care treatments. Wright Lassiter III, president and CEO of Henry Ford Health System, is chair of the AHA. Spectrum was projecting a loss of $57.1 million, which also is an eye-opening surprise. It comes as no surprise that Spectrums takeover received the green light. He also noted that Beaumont received Medicare advances of $505 million in 2020 that needs to be returned this year. Beaumont does not have a good reputation regarding how they treat employees. Have you tried to find Beaumont Healths financial statements? Freed asks. Funny we only now are learning just how badly Fox ran Beaumont into the ground. But Spectrums management is 100 percent running the show. According to one source, Beaumont at least until recently had more than 3,000 job openings. Beaumonts orthopedic surgeons, ranked among the best in the country, are doing their lucrative joint replacement surgeries at area ambulatory centers. Spectrum CEO Tina Freese Decker will lead the combined company. Share. 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. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. BHSH will be the biggest hospital network in Michigan and the states biggest employer. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. By Eric Starkman Beaumont Health CEO John Fox has no shame. As often happens when you meld two organizations, the weaker one brings the stronger one down. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. To support Deadline Detroit's independent. Even more disconcerting: Beaumont chairwoman Julie Fream will serve as chairwoman if the companies merge. Instead, thanks to aggressive cost cutting and other misguided decisions by Fox and COO Carolyn Wilson, Beaumont imploded. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. By Eric Starkman John Fox, the Atlanta carpetbagger who washed up on the shores of southeastern Michigan seven years ago to bolster Beaumont Health's profits and gussy up Metro Detroit's. Theres no prestige working at Beaumont anymore. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. One of the deciding factors in evaluating merging Beaumont and Spectrum will be the financial terms of the deal. 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. A credible and competent board would have fired Fox, Wilson, and chief medical officer David Wood Jr. after internal surveys last year revealed the majority of Beaumont doctors and nurses had no confidence in them. In another example of how Freese Decker is just like John Fox in looking to deceive and distract, Spectrum announced it will provide Oakland University with $20 million over the next five years for a Beaumont Health Nurse Scholar Program. Beaumont nurses and nurse anesthetists quit in droves, joining staffing agencies that paid them more money and ensured them better working conditions. Beaumont Troy, the only hospital in the companys network with a 5-star ranking for safety from the Centers of Medicare and Medicaid, doesnt have the management strife of Royal Oak. 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. Whats notable about Foxs disclosure is the seeming priorities of Spectrum compared to Advocate Aurora, the Chicago-based hospital system that Fox tried to give Beaumont away to in June 2020 under terms so obscenely favorable to Advocate Aurora, he couldnt pull it off. Freese Decker cant say she wasnt warned. 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. Giving some of them oversight over a considerably bigger hospital system is reckless and irresponsible. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Freed is seemingly unaware of how desperate Beaumont CEO John Fox is to find a merger partner and complete the sale before year-end. A company is headquartered where the CEO is based. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. 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. Reach Eric Starkman at: eric@starkmanapproved.com. That amounts to a Spectrum takeover in my book. To support Deadline Detroit's independent. 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 higher health care costs in that state. 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. By Eric Starkman. Not a situation one would expect given that Freese Decker said her biggest priority was building a health system that celebrates and reinforces diversity and inclusion.. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. The metric that matters most is quality of patient care. Beaumont derailed the effort after spending nearly $2 million on union busters, furthering ill will among its nurses. To support Deadline Detroit's independent. 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. Its a no-brainer to understand why Fox desperately needs to pull off the Spectrum merger. Beaumont Royal Oak nurses must sometimes tend to as many as seven at a time. Beaumont CEO Fox and COO Wilson Must Go Now! The scuttlebutt around town is that Beaumont directors believe that a merger is the only way to get rid of Fox. Beaumont CEO John Fox is headed for the door Friday. Freese Decker grabbed the brass ring, but it was badly tarnished. The expansion is apromising sign that Spectrum is willing to commit money and resources to expand and upgrade Beaumonts facilities and reverse the decline the hospital system has suffered from Foxs extensive cost-cutting during his seven-year reign. Ive been looking for the past week and have not located them. Beaumont CEO Fox and COO Wilson Must Go Now! This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. His latest story for DeadlineDetroit.com shows that high ranking executives are being let go in advance of the proposed merger with Grand Rapids based Spectrum Health. Today is indeed a historic day. 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." Allowing them to continue profiting from their mismanagement would undermine Spectrum managements credibility from the get-go. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who . Turns out Beaumonts reported $4 billion reserve also dwindled by the time Fox turned over the keys to Freese Decker. Said a veteran Troy ER source: Ive never seen anything like this in all my years of nursing. Much of Freeds letter focuses on why merging with Beaumont is very bad for western Michigan residents, but in doing so he calls out Beaumonts lack of financial transparency and notes that the few disclosures Beaumont makes dont add up. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. I expect Fox to promote the deal as a merger of equals and its possible the Beaumont name could be retained in some capacity, but dont be fooled: The combination is Foxs Hail Mary attempt to cash out and distract from the extensive damage his leadership has caused. Reach Eric Starkman at: eric@starkmanapproved.com. Support our reporting by becoming aDeadline Detroit memberfor as little as $3 per month. He previously concluded a deal with Akron-based Summa Health but backed out despite already having received regulatory approval. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Starkman: Beaumont CFO John Kerndl and Top CEO Aide Say No! Fox isnt the only hospital executive looking to exploit the perception that the unvaccinated are responsible for wreaking havoc. Virtually all of Fox's senior management team resigned or was . Fox disclosed that Beaumont has extensively expanded its use of nurse staffing agencies, which could exacerbate already poor morale among its nurses. Beaumont spent nearly $2 million on union busters when nurses at the Royal Oak hospital attempted to organize in 2019. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Fox took his marching orders from John Lewis, a retired Comerica executive who came from Oakwood and was named chairman of the combined organizations. All of Spectrums top executives are based in Grand Rapids, which is understandable since none of Foxs top lieutenants remained with the company. 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. And that has resulted in the emergency rooms of Beaumont Royal Oak and Troy becoming so overwhelmed they are unprepared to handle unexpected catastrophes required of them as regional trauma centers. The list goes on. Spectrum and Beaumont are not corporate equals. Fox said Beaumont plans to ask for military assistance to support its other facilities. Starkman: America's Mistakenly Entitled Restaurant Workers February 08, 2023, 12:24 PM - Starkman Approved 'The Week That Was:' Why Police Have Groups Like the 'Scorpion Unit' February 03,. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Fox that year was paid $5.9 million. 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. Disgruntled Staff. Reach Eric Starkman at: eric@starkmanapproved.com. Soon after, Fox announced the Advocate Aurora deal. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. A Zoom video conference call that was leaked this week among physicians and the marketing director of a North Carolina hospital involved a discussion on how to manipulate Covid patient stats to make them more scary to the public. Henry Ford also said the unvaccinated were exacerbating its staff shortages. September 15, 2020, 9:36 PM . Reach the writer ateric@starkmanapproved.com. The anesthesiologists did this while earning a fraction of their . Many organizations are not interested in real change, Chris Metzler, the former associate dean for human resources and diversity studies at Georgetown University, told NBC News. Studies show that when hospitals combine, healthcare prices increase while patient quality declines. Spectrum has also been embroiled in controversy that made national news. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. In a further diss to the community, Beaumont converted a laundry facility into a makeshift morgue without getting permits. 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