Theres no prestige working at Beaumont anymore. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. 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. Reach Eric Starkman at: eric@starkmanapproved.com. The Detroit News. 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. Fox isnt the only hospital executive looking to exploit the perception that the unvaccinated are responsible for wreaking havoc. Today is indeed a historic day. 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. Yet neither Whitmer or Nessel demanded any diversity or health equity commitments from Spectrum as a condition of its takeover. Starkman: Prominent Beaumont Cardiologist Calls for Ouster of Corporate Leaders, The Clueless Generosity of Beaumont CEO John Fox, Beaumont's Bonuses and the Sorry State of Michigan's Political Leadership, The Controversial Company Beaumont CEO John Fox Keeps, Beaumont Chief John Fox to Detroit-Area Children -- FU Too, The Beaumont Health Superheroes Who Spoke Truth to Power, The Discredited PR Spin of Beaumont Health CEO John Fox, Beaumont and Advocate Aurora End Merger Discussions, Prominent Beaumont Donor Calls for Firing of CEO John Fox and His Key Executives, 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. 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. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. When Fox arrived, Beaumont Royal Oak was among the best regional hospitals in the country; today it can best be described as a giant but mediocre community hospital. 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. 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. As often happens when you meld two organizations, the weaker one brings the stronger one down. 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. Joseph Hill, who was hired to be diversity chief at Hermann Health System in Houston, was fired even before starting his job allegedly because he had already identified racial bias at the hospital. Lewis, the board chair, was replaced earlier this month by Julie Frehm, president and CEO of the Original Equipment Suppliers Association. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. According to a source, some travel nurses are being paid lucrative wages to work only three or four shifts a week. 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. To support Deadline Detroit's independent. A trade publication quoted Freese Decker today as saying theres widespread enthusiasm in western and southeastern Michigan for the merger. 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. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. 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 situation has become so acute that an ICU patient was recently treated in Troys ER. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. If (Beaumonts) operating margins are adequate, and they have plenty of cash, whats the problem? Beaumonts leadership page only features a photo and bio of Julie Fream, who on paper at least seems credible: Fream is the president and CEO of the Original Equipment Suppliers Association, an industry nonprofit, and she has a Harvard MBA. There are no bios or photos of Beaumonts other directors, and thats by intent. The evidence is overwhelming that when hospitals merge, prices go up. Companies often create diversity positions for window dressing purposes. Spectrumissued a statement to MiBizabout the disastrous financials reminiscent of the spin Fox served up during his seven-year tenure. BHSH is what Spectrum calls its combined Beaumont and Spectrum operations. Spectrumreportedthat Beaumonts operations already have racked up nearly $100 million in losses. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Beaumont Health CEO John Fox, the Atlanta carpetbagger who destroyed the companys flagship Royal Oak hospital while pocketing more than $20 million for himself, appears close to pulling off what he set out to do from the moment he arrived in Metro Detroit six years ago: Merging southeastern Michigans biggest hospital network out of existence. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. The FTCs approval isnt certain, as President Biden has asked the agency to be more critical of mergers. Spectrum, with $6.9 billion in revenues, operates 14 hospitals in the western side of the stateand has 30,000 employees. 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. The silence is understandable. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. 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. Spectrum CEO Tina Freese Decker obviously believes the Beaumont merger is already a done deal. Nursing shortages are causing havoc at other Beaumont hospitals as well. Reach Eric Starkman at: eric@starkmanapproved.com. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. By Eric Starkman During the Covid pandemic, a hospital's safety practices are more. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Beaumont Dearborn also is receiving military assistance to help the hospital manage its Covid patient load. Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. 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. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. The quality of care has declined to such a degree that insiders readily admit they wouldnt entrust their families care to the hospital. By Eric Starkman . 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. I dont know how we could handle a catastrophe, said a source at Royal Oaks ER. He didnt address staff as folks as hes repeatedly done in the past and he looked more relaxed and rested than in previous videos. Spectrums board includes Doug DeVos, co-chair of Amway, whose family is among the most powerful in Michigan. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Freese Decker held various strategic and operational roles before being named to the top job in 2018. 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. 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. 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. 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. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. According to one source, Beaumont at least until recently had more than 3,000 job openings. The Michigan Nurses Union vowed it would no longer seek to organize at Beaumont because of the companys climate of fear.. 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. Craig's guest is Eric Starkman, Deadline Detroit contributor and author of the blog Starkman Approved. 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 nurses and nurse anesthetists quit in droves, joining staffing agencies that paid them more money and ensured them better working conditions. Spectrum appears to have grown organically, focused on a region it knows well. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Far from it. In Dearborn, the nursing shortage is so acute that an ICU operates at 60 percent capacity. BHSH will be the biggest hospital network in Michigan and the states biggest employer. 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. Fox and spinmeister Geary have a history of making statements that are deceptive and misleading, a compilation of which can be found here. 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. Said a veteran Troy ER source: Ive never seen anything like this in all my years of nursing. By that measure Fox, Wilson, and Wood have poor performance scorecards. Hospital plans are designed to incentivize doctors not to order or recommend expensive procedures in order to reduce payouts. 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. Beaumont CEO John Fox will forever be remembered in the Detroit area as a con man. That would mean there wouldnt be one senior executive from Beaumont involved in the management of the combined hospital systems. 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. 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. That resulted in Beaumont staff nurses working alongside nurses getting paid considerably more money doing the same job, prompting more staff nurses to leave. Share. That's bad news for Metro Detroit's biggest hospital system. The scuttlebutt around town is that Beaumont directors believe that a merger is the only way to get rid of Fox. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? . 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. Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. Also unavailable for clarifications will be Dawn Geisert, Beaumonts former compliance chief. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Michael Freed doesn't "see any value in this merger. One of the deciding factors in evaluating merging Beaumont and Spectrum will be the financial terms of the deal. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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.. The anesthesiologists did this while earning a fraction of their . Beaumont at one point claimed to have 38,000 employees, but with layoffs and unfilled positions its not clear how many employees remain. Bloomberg on Wednesday posted an editorial warning about the growing merger trend among hospitals, noting that it leads to higher insurance prices. Beaumont Royal Oak nurses must sometimes tend to as many as seven at a time. 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.. Michigan Gov. Freese Decker this week toured Beaumont Troy Hospital, and notably neither Fox nor COO Carolyn Wilson were in tow. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, AG Dana Nessel and Gov. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. Beaumont is awaiting approval to be rescued by Spectrum Health in Grand Rapids. ER sources at Royal Oak and Troy say Covid patients account for a small percentage seeking emergency treatment. Nonprofit hospitals are supposed to manage their investments conservatively, opting for boring short-term duration bonds and other low risk investments. 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. Starkman: Beaumont's FU to Metro Detroit and its Covid-19 Workers Tweet. Underscoring Beaumonts disregard for transparency, the company routinely waits till the very last day before filing its Form 990, a document nonprofits are required to make public revealing compensation and other critical information. Despite Freeds damning allegations, Beaumont spokesman Mark Geary ignored a request for comment. Allowing them to continue profiting from their mismanagement would undermine Spectrum managements credibility from the get-go. Wright Lassiter III, president and CEO of Henry Ford Health System, is chair of the AHA. 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. 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. 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. 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. Consultants are part of the . 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. Nessel also has made that claim. 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.. Virtually all of Fox's senior management team resigned or was . 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. But unlike Beaumont, Henry Fords staffing issues arent due to mismanagement. Spectrum reported that Beaumont's operations already have racked up nearly $100 million in losses. February 02, 2022, 4:58 PM . Beaumont Health CEO John Fox has no shame. Reach Eric Starkman at: eric@starkmanapproved.com. By Eric Starkman Beaumont Health CEO John Fox has no shame. The merger could still fall apart if Spectrum has a top-notch duediligence team. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Beaumont is a crippled hospital network on management life support. Beaumont derailed the effort after spending nearly $2 million on union busters, furthering ill will among its nurses. Funny we only now are learning just how badly Fox ran Beaumont into the ground. Hiring nurses for Henry Fords flagship Detroit hospital is a more formidable challenge because some candidates fear working in Detroit. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved. Ohios AG has won a series, Today is indeed a historic day. 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. 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. Beaumont spokesman Mark Geary ignored a request for comment. View Comments. Instead, thanks to aggressive cost cutting and other misguided decisions by Fox and COO Carolyn Wilson, Beaumont imploded. That wasnt entirely true. 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! 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. Lewis resigned as chair just prior to Fox announcing Spectrums takeover and left the board in December. 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. Beaumonts orthopedic surgeons, ranked among the best in the country, are doing their lucrative joint replacement surgeries at area ambulatory centers. Even Beaumont employees suffering from myopia can read this writing . Carey has spent more than 20 years as a . The list goes on. There is compelling research showing that hospital mergers result in higher patient costs and reduced quality of care. 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. A source told me that Barbee was highly regarded among Spectrums Black employees but was frustrated by his inability to achieve meaningful change. It speaks volumes that Spectrum Health CEO Tina Freese Decker and her fellow directors have chosen to get into bed with the directors who are ultimately responsible for the implosion of Beaumont Health. By Eric Starkman Beaumont Health CEO John Fox has no shame. Spectrums takeover of Beaumont was a deal that should never have been allowed. 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. Grand Rapids business community is small and tight knit, and Spectrum is a major employer in western Michigan. I know little about Fream, who served as Beaumonts vice chair for several years. 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. 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. Giving some of them oversight over a considerably bigger hospital system is reckless and irresponsible. Freese Decker grabbed the brass ring, but it was badly tarnished. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. 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. Demanded any diversity or Health equity commitments from Spectrum as a and author the. Acquire Beaumont, Henry Fords flagship Detroit hospital is a major hospital company and the Exploitation of Michigan Taxpayers will. 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