The silence is understandable. 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! Reach Eric Starkman at: eric@starkmanapproved.com. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. By Eric Starkman. I know little about Fream, who served as Beaumonts vice chair for several years. Fox cancelled the Advocate Aurora deal a few days later. Reach Eric Starkman at: eric@starkmanapproved.com. Its a vicious cycle, one that I doubt Spectrum has figured out how to solve. Beaumont Troy is a Level II and must also be prepared to handle a wide range of emergencies. 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. In addition to her Beaumont debacle, theres been considerable turnover in Spectrums senior ranks, mostly women. Reach Eric Starkman at: eric@starkmanapproved.com. 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. Hiring nurses for Henry Fords flagship Detroit hospital is a more formidable challenge because some candidates fear working in Detroit. 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 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. He previously concluded a deal with Akron-based Summa Health but backed out despite already having received regulatory approval. Spectrum no doubt knew that Fox was desperate to unload Beaumont, so Freese Decker had him by the cajones. 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. To be sure, Beaumont isnt alone in suffering from a nursing shortage. Freese Decker grabbed the brass ring, but it was badly tarnished. Disgruntled Staff. Beaumont Royal Oak nurses must sometimes tend to as many as seven at a time. Fox is about 70, and given his failed performance, it was a given that he wouldn't lead the combined Spectrum Beaumont entity. Theres no prestige working at Beaumont anymore. So What? Merging with Beaumont would more than double Spectrums size in some areas. Beaumont CEO John Fox is headed for the door Friday. Beaumonts Fox doesnt take pride in the directors he is supposedly accountable to, possibly because he regards them as his subordinates. 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. 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. 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. Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. 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. 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. 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. 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. She never followed up with a comment. Even when Fox announces a merger deal with Spectrum, theres still no guarantee it will go through. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. Nonprofit hospitals are supposed to manage their investments conservatively, opting for boring short-term duration bonds and other low risk investments. There are some serious issues with NorthStar Anesthesia, the Texas-based outsourcing company that Wilson bet the farm on and losing badly so far. Companies often create diversity positions for window dressing purposes. Spectrum also is comfortable issuing misleading or deceptive statements, so culturally Beaumont is possibly a great fit. 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. Corewell Health has appointed Dr. Daniel Carey as the new president for its Beaumont Hospital campus in Royal Oak. The promised dual headquarters was also BS. Beaumont reported operating revenues of $4.6 billion in 2020 and is only an eight-hospital system. Spectrums due diligence team will be unable to get clarifications on Beaumonts financials from the companys CFO because it doesnt have one. The situation has become so acute that an ICU patient was recently treated in Troys ER. View Comments. Spectrums joint release with Beaumont says the aim of the deal is to make health care more affordable for the communities we serve. Heres my challenge to Freese Decker: For every independent study she can come up with showing where hospital mergers resulted in more affordable care, I will come up with two showing the opposite. 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. Moreover, rookie nurses still have a lot to learn. These contracted doctors also were responsible for setting up a Covid-19 ICU unit at Beaumont Troy. Reach Eric Starkman at: eric@starkmanapproved.com. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. . The merger rationale was that hospitals benefitted from getting bigger and achieving economies of scale. Beaumont nurses and nurse anesthetists quit in droves, joining staffing agencies that paid them more money and ensured them better working conditions. That wasnt entirely true. Still, Beaumont is clearly going to be a financial albatross on Spectrums operations for quite some time. A lifelong Michigander with an impressive background, Barbee resigned in October to join Indiana University Health as head of HR. An additional director will also be named. 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. Spectrums takeover of Beaumont was a deal that should never have been allowed. The combined Spectrum and Beaumont operations will temporarily be called BHSH System. Reach Eric Starkman at: eric@starkmanapproved.com. Beaumont institutionally has a very tenuous relationship with truth. Employees blame them both for Beaumonts implosion. Israel relies nearly 100 percent on Pfizer vaccines, while the U.S. also has a prevalence of Moderna and J&J vaccines. Gretchen Whitmer. 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. Support our reporting and commentary by becoming a Deadline Detroit member for as little as $3 per month. Among the benefits of the deal Fox trumpeted was a $1 billion commitment to move the William Beaumont School of Medicine from Oakland University to Beaumonts flagship Royal Oak campus and a significant increase in technology spending. Hospital plans are designed to incentivize doctors not to order or recommend expensive procedures in order to reduce payouts. 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. 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. But unlike Beaumont, Henry Fords staffing issues arent due to mismanagement. Thats how Beaumont ended up in the sorry state that it did. 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. 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. Share. 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,. 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. Starkman: Why Beaumont's John Fox Could Haul More Than $30 Million Back to Atlanta Tweet. 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. Disgruntled Staff. He didnt address staff as folks as hes repeatedly done in the past and he looked more relaxed and rested than in previous videos. 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.. 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. 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. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. 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. That Fream will serve as chair of the board overseeing a combined Spectrum and Beaumont is a disgrace and underscores Michigans poor leadership. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. Why would Beaumont nurses want to remain on staff when they can make more money working at a staffing agency? Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. The quality of care has declined to such a degree that insiders readily admit they wouldnt entrust their families care to the hospital. I only see the potential for massive financial loss., Freed warns Spectrums directors: When you sign the documents that will permanently change this region, your signature will forever hold you accountable for the repercussions.. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. 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. 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. Even more disconcerting: Beaumont chairwoman Julie Fream will serve as chairwoman if the companies merge. 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. If the proposed merger goes through, seven Beaumont board members will serve on the board of the combined companies. Spectrums board includes Doug DeVos, co-chair of Amway, whose family is among the most powerful in Michigan. Pamela Ries, senior vice president and head of HR at Spectrum, is listed as chief integration officer. 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. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. That's bad news for Metro Detroit's biggest hospital system. Fox said Beaumont plans to ask for military assistance to support its other facilities. 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. The head of Beaumonts audit committee was Julie Fream, who earlier this month became the hospital networks chair and has no auditing experience or background listed on her LinkedIn page. But Beaumonts release last month announcing her elevation to chair to replace John Lewis provides some insight. 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. Freed doesnt disclose his hunch about Beaumonts financials, which received less oversight than he possibly knows. According to a source, some travel nurses are being paid lucrative wages to work only three or four shifts a week. According to the most recently available filings, Freese Decker earned $3.9 million in 2018. As often happens when you meld two organizations, the weaker one brings the stronger one down. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. By Eric Starkman Beaumont Health CEO John Fox has no shame. Studies show that when hospitals combine, healthcare prices increase while patient quality declines. Spectrum CEO Tina Freese Decker obviously believes the Beaumont merger is already a done deal. 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. Rather than having people speculate he was passed over, he chose to step down in advance. 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 . Share. My guess is that if Freed understood how Beaumonts directors stood idly by while Beaumont imploded, hed challenge their appointments regardless. The scuttlebutt around town is that Beaumont directors believe that a merger is the only way to get rid of Fox. 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. 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. Studies also show that hospital mergers also result in a decline in patient care. 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. 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. Is that still on track given Beaumonts oceans of red ink? To support Deadline Detroit's independent. Fox and spinmeister Geary have a history of making statements that are deceptive and misleading, a compilation of which can be found here. Its totally bizarre.. Starkman: Beaumont CFO John Kerndl and Top CEO Aide Say No! Whats becoming increasingly obvious is how Freese Decker, like John Fox, is prone to making public statements that have no basis in fact. There are no bios or photos of Beaumonts other directors, and thats by intent. Spectrum was targeting a $156 million operating profit. Said a veteran Troy ER source: Ive never seen anything like this in all my years of nursing. 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. In his letter, Freed expresses concern that seven Beaumont directors will be named to the combined Spectrum-Beaumont board and that they could ultimately exert undue influence. Even Beaumont employees suffering from myopia can read this writing . Freed has vowed he will hold Spectrums directors accountable for the repercussions to his Grand Rapids community. Beaumont CEO Fox and COO Wilson Must Go Now! Understandably, Spectrum is a more profitable hospital system, but its profits also are bolstered by its lucrative Priority Health insurance arm. Reach Eric Starkman at: eric@starkmanapproved.com. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? April 18, 2020, 3:27 PM . Spectrum appears to have grown organically, focused on a region it knows well. Why isnt Freese Decker following through on that supposedly great initiative? The FTC is headed by Lina Khan, a Democrat appointed by Biden and sworn in last June 15 to a three-year term. The FTC decision to implicitly rubber stamp Spectrums takeover underscores the weakness of President Bidens leadership and the little respect he commands, even among his own appointees. The FTCs approval isnt certain, as President Biden has asked the agency to be more critical of mergers. Many executives ask me privately, How many Black people do I have to have?. Funny we only now are learning just how badly Fox ran Beaumont into the ground. 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. 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. Financially, the pandemic was very good to Beaumont, as the hospital system pocketed an additional $1 billion for its $2.5 billion reserve kitty while furloughing and terminating hundreds of employees. That could further worsen Beaumonts nursing shortage. Another open position is the Chief Inclusion, Equity, Diversity and Social Impact Officer.. 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. Multiple sources have shared theyve been told by some Beaumont directors that Fox cant be fired, but no one gave a reason as to why. 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. A traditional Bachelor of Science degree in nursing is typically four years. 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? Spectrums board is certainly a lot tougher on compensation. Reach the writer ateric@starkmanapproved.com. It isnt clear from Beaumonts stats that the hospitals Covid patients were admitted because of the disease or possibly some other serious ailments. Share. Spectrum is a competently run company on an upward trajectory, while Beaumont is a very damaged goods operation. The metric that matters most is quality of patient care. 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. 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. Have you tried to find Beaumont Healths financial statements? Freed asks. Starkman: Beaumont's FU to Metro Detroit and its Covid-19 Workers Tweet. 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. When you sign the documents that will permanently change this region, your signature will forever hold you accountable for the repercussions, Freed said in a letterhe posted on LinkedIn. I can suspect what the problem is but, without transparency, I cant know.. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. Nessel also has made that claim. Carey has spent more than 20 years as a . Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. Ohios AG has won a series, Today is indeed a historic day. Instead, thanks to aggressive cost cutting and other misguided decisions by Fox and COO Carolyn Wilson, Beaumont imploded. As best I can tell, Freese Decker is genuinely committed to forging relationships with the communities Spectrum serves, unlike Fox and his managers, many of whom dont even live in the Detroit area. The list goes on. 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