But unlike Beaumont, Henry Fords staffing issues arent due to mismanagement. Rather than having people speculate he was passed over, he chose to step down in advance. 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. 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. Disgruntled Staff. That Fream will serve as chair of the board overseeing a combined Spectrum and Beaumont is a disgrace and underscores Michigans poor leadership. 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. Beaumont spent nearly $2 million on union busters when nurses at the Royal Oak hospital attempted to organize in 2019. 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.. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. According to the most recently available filings, Freese Decker earned $3.9 million in 2018. The nursing scholarship wont alleviate Spectrums immediate nurse staffing issues. Beaumonts orthopedic surgeons, ranked among the best in the country, are doing their lucrative joint replacement surgeries at area ambulatory centers. 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. 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. There are no bios or photos of Beaumonts other directors, and thats by intent. The FTCs approval isnt certain, as President Biden has asked the agency to be more critical of mergers. 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. Reach Eric Starkman at eric@starkmanapproved.com . Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Spectrums prices are higher than Beaumonts, as the hospital network has significantly less competition in western Michigan. 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. 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. A traditional Bachelor of Science degree in nursing is typically four years. Nursing shortages are causing havoc at other Beaumont hospitals as well. Despite these challenges, our team members continued to provide nationally recognized health care and we were able to make new investments in the market and bring on new talent, Spectrum said. The scuttlebutt around town is that Beaumont directors believe that a merger is the only way to get rid of Fox. I know little about Fream, who served as Beaumonts vice chair for several years. All of Spectrums top executives are based in Grand Rapids, which is understandable since none of Foxs top lieutenants remained with the company. Its a vicious cycle, one that I doubt Spectrum has figured out how to solve. With regards to healthcare, Nessel is a do-nothing attorney general who has stood idly by as Fox drove Beaumont into the ground and is expected to rubber stamp Spectrums takeover. In his video, Fox was wearing a pinstripe suit jacket, not his trademark blue blazer. Spectrums board includes Doug DeVos, co-chair of Amway, whose family is among the most powerful in Michigan. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Reach Eric Starkman at: eric@starkmanapproved.com. 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. Fox cancelled the Advocate Aurora deal a few days later. 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 release, which Fream presumably signed off on, said her appointment was part of a normal governance leadership rotational process.. Soon after, Fox announced the Advocate Aurora deal. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. BHSH will be the biggest hospital network in Michigan and the states biggest employer. Beaumont institutionally has a very tenuous relationship with truth. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Beaumont is awaiting approval to be rescued by Spectrum Health in Grand Rapids. The Chief People Officer position is listed as open, indicating that Ries isnt getting the top HR job at BHSH. Fox has a change of control clause in his contract, meaning he will likely receive a lucrative exit package. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. 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.. For years, former Beaumont CEO John Fox was paid more than $6 million annually because of his supposedly deft fiscal management. In a September letter to Michigan Attorney General Dana Nessel warning about Beaumonts implosion, Shaevsky spoke of the need for independent directors to bring some stability to the organization.. I dont see any value in this merger, Freed says of the marriage deal Spectrum and Beaumont jointly announced last week. Starkman: Beaumont's FU to Metro Detroit and its Covid-19 Workers Tweet. Inexperienced nurses The merger rationale was that hospitals benefitted from getting bigger and achieving economies of scale. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. Said a veteran Troy ER source: Ive never seen anything like this in all my years of nursing. Also, if you wish to support Deadline Detroit's. Share. It is said that you can judge a person by the company they keep. Starkman: Beaumont's Woes Prove CEO Tina Freese Decker Unfit to Run Michigan's Biggest Hospital System Tweet Share August 19, 2022, 3:14 PM The writer, a Los Angeles freelancer and former. Many executives ask me privately, How many Black people do I have to have?. Its not unusual for a so-called charge or supervisory ICU nurse to have just one year of experience. 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.. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Michael Freed doesn't "see any value in this merger. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Funny we only now are learning just how badly Fox ran Beaumont into the ground. She bolted last month. 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. So What? 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. The nurse anesthetists at Beaumont Royal Oak, Troy and Grosse Pointe hospitals, who are critical to keeping their facilities' lucrative surgery businesses humming, are mad as hell and aren't going to take it anymore. In what will likely be his final FU to Metro Detroit, Fox will depart on Friday. Beaumont was once mostly staffed by highly skilled veterans, among the best in healthcare. Tina Freese Decker, president and CEO of Spectrum, is chair of the Michigan Health & Hospital Association. 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. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who . Although Spectrum and Beaumont have characterized their combination as a merger, Spectrum is effectively taking over Beaumont. Understandably, Spectrum is a more profitable hospital system, but its profits also are bolstered by its lucrative Priority Health insurance arm. 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. Moreover, rookie nurses still have a lot to learn. Other state attorney generals have also shown a willingness to take on the powerful interests of U.S. hospital companies. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. 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. Freed doesnt disclose his hunch about Beaumonts financials, which received less oversight than he possibly knows. 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. Lewis resigned as chair just prior to Fox announcing Spectrums takeover and left the board in December. Despite Freeds damning allegations, Beaumont spokesman Mark Geary ignored a request for comment. 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. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? No one from southeastern Michigan has emerged promising to hold Julie Fream and other Beaumont directors who supported Fox accountable for the harm theyve caused Metro Detroit residents. 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. That could further worsen Beaumonts nursing shortage. Fox is about 70, and given his failed performance, it was a given that he wouldn't lead the combined Spectrum Beaumont entity. To support Deadline Detroit's independent. 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. Share. Giving some of them oversight over a considerably bigger hospital system is reckless and irresponsible. Confidentiality is assured. 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. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. Beaumont CEO John Fox will forever be remembered in the Detroit area as a con man. There are some serious issues with NorthStar Anesthesia, the Texas-based outsourcing company that Wilson bet the farm on and losing badly so far. Carey has spent more than 20 years as a . How Absurd. 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. Corewell Health has appointed Dr. Daniel Carey as the new president for its Beaumont Hospital campus in Royal Oak. But Spectrums management is 100 percent running the show. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. The promised dual headquarters was also BS. Its a no-brainer to understand why Fox desperately needs to pull off the Spectrum merger. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. 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. 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. 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. The merger could still fall apart if Spectrum has a top-notch duediligence team. Southeastern Michigan residents shouldnt look to Rep. Andy Levin to save the day. A company is headquartered where the CEO is based. So What? 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. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. Whats notable about the joint announcement and Beaumonts internal communications is whats missing. Henry Ford Hospital announced this week that it was closing 120 inpatient beds systemwide due to staffing shortages. 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. Reach Eric Starkman at: eric@starkmanapproved.com. 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. By Eric Starkman. In a company video posted on Vimeo Thursday, Beaumont CEO John Fox disclosed that Beaumont plans to spend significant dollars to embark on a three to five-year plan to expand the health systems private bed capacity. 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,. Reach the writer ateric@starkmanapproved.com. Reach Eric Starkman at: eric@starkmanapproved.com. That's bad news for Metro Detroit's biggest hospital system. Yet neither Whitmer or Nessel demanded any diversity or health equity commitments from Spectrum as a condition of its takeover. Employees blame them both for Beaumonts implosion. Beaumont CEO John Fox is headed for the door Friday. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Spectrum is a competently run company on an upward trajectory, while Beaumont is a very damaged goods operation. It isnt clear from Beaumonts stats that the hospitals Covid patients were admitted because of the disease or possibly some other serious ailments. 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. Freed is seemingly unaware of how desperate Beaumont CEO John Fox is to find a merger partner and complete the sale before year-end. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Those warnings are what led Congress to approve the financial largesse that Beaumont and other hospitals benefited from. Reach Eric Starkman at: eric@starkmanapproved.com. (Deadline Detroit art work ), 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. Have you tried to find Beaumont Healths financial statements? Freed asks. He didnt address staff as folks as hes repeatedly done in the past and he looked more relaxed and rested than in previous videos. 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. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. These contracted doctors also were responsible for setting up a Covid-19 ICU unit at Beaumont Troy. A lifelong Michigander with an impressive background, Barbee resigned in October to join Indiana University Health as head of HR. Spectrums financial statements indicate that cash and investments from the acquisition was $3.2 billion. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. 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. According to one source, Beaumont at least until recently had more than 3,000 job openings. . The deal will invariably be good for Fox, as he will likely get a very lucrative exit package to sail into the Georgia sunset. Companies often create diversity positions for window dressing purposes. 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. 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. September 15, 2020, 9:36 PM . 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. 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. It was closing 120 inpatient beds systemwide due to staffing shortages available filings, Freese Decker, president and of. Confidentiality assured more relaxed and rested than in previous videos get rid of.. Over Beaumont to find Beaumont Healths financial statements one source, Beaumont at least until recently had than... 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