The deal will invariably be good for Fox, as he will likely get a very lucrative exit package to sail into the Georgia sunset. Disgruntled Staff. to Michigan Tweet. Reach Eric Starkman at: eric@starkmanapproved.com. By Eric Starkman Beaumont Health CEO John Fox has no shame. 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. 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.. Share. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. They are looking at diversity as a numbers game. Nursing shortages are causing havoc at other Beaumont hospitals as well. By that measure Fox, Wilson, and Wood have poor performance scorecards. The company announced this week that Aaron Gillingham, Beaumont Healths senior vice president and chief human resources officer and interim chief compliance officer, has resigned. That's bad news for Metro Detroit's biggest hospital . Fox has a change of control clause in his contract, meaning he will likely receive a lucrative exit package. By Eric Starkman During the Covid pandemic, a hospital's safety practices are more. The companys chief revenue officer left earlier this month. He tweeted on Thursday that he was cautiously optimistic about certain aspects of the partnership. 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. We are incredibly excited about the impact the BHSH Beaumont Health Nurse Scholar program will have in health care and for our communities.. The terms of the deal were so obscenely favorable to Advocate Aurora that Rep. Andy Levin, whose district includes Beaumont Royal Oak, announced he would oppose the deal. 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. Also fostering ill will is Beaumonts mandate requiring that all employees be vaccinated or be fired. 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. 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. Yet the Leapfrog safety rating of Henry Fords flagship hospital in Detroit is a C, while its ambulatory center in more affluent West Bloomfield enjoys an A. HFH chief Lassiter is Black, and almost half of the flagship hospitals staff is nonwhite. 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. To be sure, Beaumont isnt alone in suffering from a nursing shortage. 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. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. If this is a signal of what to expect if Grand Rapids-based Spectrum Health is allowed to rescue Beaumont Health from further decline, maybe the takeover isnt quite as ill-advised as I thought. To support Deadline Detroit's independent. To the distaste of the pediatric heads colleagues, Susick walked him out of the hospital in front of his staff. Based on Foxs history, its quite possible it will be terms that most benefit him. The Royal Oak budget cuts were made in 2020, when Beaumont increased its reserves to $3.5 billion from $2.5 billion and Fox earlier in the year warned U.S. hospitals could collapse because of the pandemic. Craig's guest is Eric Starkman, Deadline Detroit contributor and author of the blog Starkman Approved. As often happens when you meld two organizations, the weaker one brings the stronger one down. 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.. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. Fox, who owns homes in Atlanta and North Carolina, cant be bothered to even create the appearance that he cares about Beaumonts future. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. However, Beaumont Royal Oak is one of the busiest surgical centers in the country. By comparison, BHSH will have 22 hospitals and 64,000 employees. 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. 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. Disgruntled Staff. Said a veteran Troy ER source: Ive never seen anything like this in all my years of nursing. Beaumont CEO John Fox is headed for the door Friday. Spectrums prices are higher than Beaumonts, as the hospital network has significantly less competition in western Michigan. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Confidentiality is assured. 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. Fox owns homes in Atlanta and North Carolina, Wilsons primary home is in Grand Rapids, Jordan, Beaumonts chief counsel, commutes from Atlanta, as does Susan Grant, the companys chief nursing officer. In his video, Fox was wearing a pinstripe suit jacket, not his trademark blue blazer. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Beaumont does not have a good reputation regarding how they treat employees. Pamela Ries, senior vice president and head of HR at Spectrum, is listed as chief integration officer. Beaumont is a crippled hospital network on management life support. Henry Ford Hospital announced this week that it was closing 120 inpatient beds systemwide due to staffing shortages. Wright Lassiter III, president and CEO of Henry Ford Health System, is chair of the AHA. 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. 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. Spectrum, with $6.9 billion in revenues, operates 14 hospitals in the western side of the stateand has 30,000 employees. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. He also noted that Beaumont received Medicare advances of $505 million in 2020 that needs to be returned this year. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. The list goes on. The merger could still fall apart if Spectrum has a top-notch duediligence team. According to a source, some travel nurses are being paid lucrative wages to work only three or four shifts a week. And there is no mention of what, if any, role Beaumont COO Carolyn Wilson will play after the merger. Beaumonts board failed in their duties overseeing the hospital system they were responsible for protecting. Beaumonts flagship Royal Oak hospital only garnered a four-star rating and its other hospitals earned two-and three-star ratings. Reach the writer ateric@starkmanapproved.com. "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. Instead, thanks to aggressive cost cutting and other misguided decisions by Fox and COO Carolyn Wilson, Beaumont imploded. Spectrum was projecting a loss of $57.1 million, which . Reach Eric Starkman at: eric@starkmanapproved.com. About a half dozen of Freams former board cronies also serve on the Spectrum board, once entirely controlled by Grand Rapids and western Michigan-based residents. Susan Grant, the chief nursing officer for all of Beaumont, has her primary home in Atlanta. 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. Spectrum was projecting a loss of $57.1 million, which also is an eye-opening surprise. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. 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. Reach Eric Starkman at: eric@starkmanapproved.com. Is that still on track given Beaumonts oceans of red ink? She never followed up with a comment. This is Beaumont's latest attempt to merge with another hospital . Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. To support Deadline Detroit's independent. Although Spectrum and Beaumont have characterized their combination as a merger, Spectrum is effectively taking over Beaumont. The combined Spectrum and Beaumont operations will temporarily be called BHSH System. The scuttlebutt around town is that Beaumont directors believe that a merger is the only way to get rid of Fox. 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. Freese Decker cant say she wasnt warned. Freese Decker should be fired. Virtually all of Fox's senior management team resigned or was . 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. Despite Freeds damning allegations, Beaumont spokesman Mark Geary ignored a request for comment. AG Dana Nessel was personally warned by Beaumont donor and former director Mark Shaevsky two years ago that Fox and his board cronies needed to be removed, but she allowed the hospital system to deteriorate, as did Michigan Gov. 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. The silence is understandable. Those warnings are what led Congress to approve the financial largesse that Beaumont and other hospitals benefited from. If (Beaumonts) operating margins are adequate, and they have plenty of cash, whats the problem? BHSH will be the biggest hospital network in Michigan and the states biggest employer. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Freed is seemingly unaware of how desperate Beaumont CEO John Fox is to find a merger partner and complete the sale before year-end. Spectrum also reported that Beaumont lost $253 million on its investments. 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. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. According to an email obtained by the Detroit TV station, Beaumont transferred its Covid patients because the CEO said the hospital system was losing too much money treating them. Beaumont nurses and nurse anesthetists quit in droves, joining staffing agencies that paid them more money and ensured them better working conditions. 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. Getting more Americans vaccinated is widely believed the ticket to saving lives and preventing hospitals from being overrun with Covid patients at deaths door. 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. But unlike Beaumont, Henry Fords staffing issues arent due to mismanagement. 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.. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, 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. In a major blow to the hospital, Reza Dabir, Dearborns top cardiothoracic surgeon, resigned to join Ascension Health. Its not unusual for a so-called charge or supervisory ICU nurse to have just one year of experience. The good news is that Beaumont isnt overrun with critically ill Covid patients, which suggests that vaccines are doing what they were intended to do: Prevent people who contract the disease from becoming critically ill and dying. 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. Freese Decker grabbed the brass ring, but it was badly tarnished. As a result, patients requiring hospital admission must remain in the ER, diverting beds and staff normally dedicated to treating emergencies. That would mean it will take at least five years for Spectrums nurse program to bear fruit, so it wont do anything to alleviate the current nursing shortage. That wasnt entirely true. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, AG Dana Nessel and Gov. Its totally bizarre.. 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. By Eric Starkman. 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 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. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. That would mean there wouldnt be one senior executive from Beaumont involved in the management of the combined hospital systems. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. Spectrums due diligence team will be unable to get clarifications on Beaumonts financials from the companys CFO because it doesnt have one. 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. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who . That resulted in Beaumont staff nurses working alongside nurses getting paid considerably more money doing the same job, prompting more staff nurses to leave. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved. Fox didnt disclose how much Beaumont will spend to fund its real estate expansion. Tina Freese Decker, president and CEO of Spectrum, is chair of the Michigan Health & Hospital Association. Reach Eric Starkman at eric@starkmanapproved.com . Inexperienced nurses
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. That Fream will serve as chair of the board overseeing a combined Spectrum and Beaumont is a disgrace and underscores Michigans poor leadership. Beaumont Troy also operates at a reduced capacity. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Beaumont is awaiting approval to be rescued by Spectrum Health in Grand Rapids. The anesthesiologists did this while earning a fraction of their . Even Beaumont employees suffering from myopia can read this writing . 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. 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.. Thats right, CFO Matthew Cox referred to Beaumont as an acquisition, not a merger as Freese Decker and Fox led the media to believe. To support Deadline Detroit's independent. So What? Reach Eric Starkman at: eric@starkmanapproved.com. Michigan Gov. In a further diss to the community, Beaumont converted a laundry facility into a makeshift morgue without getting permits. 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. But ER nurses are angry with Melissa Foreman Lovell, Troys chief nursing officer, who they say rarely appears at the hospital. A traditional Bachelor of Science degree in nursing is typically four years. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Michael Freed doesn't "see any value in this merger. Consultants are part of the . 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. 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 writer, a Los Angeles freelancer and formerDetroit News business reporter, blogs atStarkman Approved. Beaumont spokesman Mark Geary ignored a request for comment. 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