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. Disgruntled Staff. That resulted in Beaumont staff nurses working alongside nurses getting paid considerably more money doing the same job, prompting more staff nurses to leave. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. 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. Lewis resigned as chair just prior to Fox announcing Spectrums takeover and left the board in December. Beaumont CEO Fox and COO Wilson Must Go Now! Spectrum and Beaumont are not corporate equals. 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. Many organizations are not interested in real change, Chris Metzler, the former associate dean for human resources and diversity studies at Georgetown University, told NBC News. The insurance business is among the most profitable sectors in healthcare, but as anyone who has dealt with one of these companies know, their priority is profits, not patient care. In a further diss to the community, Beaumont converted a laundry facility into a makeshift morgue without getting permits. Starkman: Beaumont's FU to Metro Detroit and its Covid-19 Workers Tweet. Also unavailable for clarifications will be Dawn Geisert, Beaumonts former compliance chief. 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. Freese Decker is likely assured a big pay increase and bonus. 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. There is compelling research showing that hospital mergers result in higher patient costs and reduced quality of care. Whats notable about the joint announcement and Beaumonts internal communications is whats missing. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. Pamela Ries, senior vice president and head of HR at Spectrum, is listed as chief integration officer. 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. I can suspect what the problem is but, without transparency, I cant know.. Despite warning the pandemic would destroy U.S. hospitals, Beaumont overall had a very good year in 2020, increasing its reserve by $1 billion to $3.5 billion. 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. Far from it. Craig's guest is Eric Starkman, Deadline Detroit contributor and author of the blog Starkman Approved. In April 2020, at the height of Michigan's pandemic, Metro Detroit's biggest hospital system called Beaumont Health without explanation closed its facility designated to treat Covid patients . If (Beaumonts) operating margins are adequate, and they have plenty of cash, whats the problem? The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. I know little about Fream, who served as Beaumonts vice chair for several years. 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.. Spectrum CEO Tina Freese Decker will lead the combined company. 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. 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. 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 and Wilson could possibly be given lucrative ceremonial or consulting roles, which would antagonize Beaumonts rank-and-file because both executives are widely despised. Freed might want to reach out to Mark Shaevsky, a prominent southeastern Michigan attorney and a former Beaumont board member before it merged with two lesser hospital companies in 2014. I'm officially declaring Beaumont CEO John Fox, the Atlanta carpetbagger whose greed and mismanagement destroyed Metro Detroit's biggest hospital system and put the health and safety of areas residents at risk, "The Cookie Monster." Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. Its a no-brainer to understand why Fox desperately needs to pull off the Spectrum merger. 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. Spectrums board strikes me as pretty buttoned up, so they might not yet appreciate the extent of how damaged Beaumont really is. That wasnt entirely true. Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. The Detroit News. Spectrum, with $6.9 billion in revenues, operates 14 hospitals in the western side of the stateand has 30,000 employees. Also, if you wish to support Deadline Detroit's. Starkman: Why Beaumont's John Fox Could Haul More Than $30 Million Back to Atlanta Tweet. Inexperienced nurses 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. BHSH is what Spectrum calls its combined Beaumont and Spectrum operations. Beaumont is a crippled hospital network on management life support. There are some serious issues with NorthStar Anesthesia, the Texas-based outsourcing company that Wilson bet the farm on and losing badly so far. 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. Even Beaumont employees suffering from myopia can read this writing . The situation has become so acute that an ICU patient was recently treated in Troys ER. The list goes on. That would mean there wouldnt be one senior executive from Beaumont involved in the management of the combined hospital systems. In his video, Fox was wearing a pinstripe suit jacket, not his trademark blue blazer. Fox said Beaumont plans to ask for military assistance to support its other facilities. 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! Fox, who owns homes in Atlanta and North Carolina, cant be bothered to even create the appearance that he cares about Beaumonts future. The merger rationale was that hospitals benefitted from getting bigger and achieving economies of scale. To the distaste of the pediatric heads colleagues, Susick walked him out of the hospital in front of his staff. 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. Beaumont does not have a good reputation regarding how they treat employees. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Beaumont Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. He didnt address staff as folks as hes repeatedly done in the past and he looked more relaxed and rested than in previous videos. Freed notes that Beaumont claims to have 300 days of cash on hand but doesnt have a top-tier bond rating allowing it to borrow money at the best rates. 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. 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. Beaumonts board failed in their duties overseeing the hospital system they were responsible for protecting. The nursing shortage has forced Beaumont Royal Oak to use so-called travel nurses from temp agencies to hold things together in the ER, but this is sparking additional resentment. Beaumont reported operating revenues of $4.6 billion in 2020 and is only an eight-hospital system. Henry Ford Hospital announced this week that it was closing 120 inpatient beds systemwide due to staffing shortages. He tweeted on Thursday that he was cautiously optimistic about certain aspects of the partnership. 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. Prioritys goal is to capture as much market share as possible and then use that power to reduce what it pays to doctors to cover their services. 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. Thats how Beaumont ended up in the sorry state that it did. 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. 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. Spectrum was targeting a $156 million operating profit. Beaumont is having difficulty attracting mid- and lower-level employees as well. 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. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. The combined Spectrum and Beaumont operations will temporarily be called BHSH System. An additional director will also be named. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Based on Foxs history, its quite possible it will be terms that most benefit him. And there is no mention of what, if any, role Beaumont COO Carolyn Wilson will play after the merger. "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. 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. The anesthesiologists did this while earning a fraction of their . 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. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. To support Deadline Detroit's independent. Is that still on track given Beaumonts oceans of red ink? Spectrum was projecting a loss of $57.1 million, which also is an eye-opening surprise. The writer, a Los Angeles freelancer and formerDetroit News business reporter, blogs atStarkman Approved. Many executives ask me privately, How many Black people do I have to have?. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. Its near impossible to put a positive spin on a critical and passionate letter written by a former top executive who played a major role transforming Spectrum into a western Michigan powerhouse. The Beaumont Health System, comprised of Royal Oak, Troy, and Grosse Pointe hospitals, was far superior and the expectation was that the merger would elevate the quality of staff and patient care at the Oakwood and Botsford hospitals. Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. He previously concluded a deal with Akron-based Summa Health but backed out despite already having received regulatory approval. Fox has a change of control clause in his contract, meaning he will likely receive a lucrative exit package. What, if any, role Wilson will play after the merger hasnt been disclosed. 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 also disclosed that Beaumont has earmarked $40 million to purchase state-of-the-art beds, some of which are already being delivered. To support Deadline Detroit's independent. Spectrums board includes Doug DeVos, co-chair of Amway, whose family is among the most powerful in Michigan. View Comments. No doubt the pot of cash is the bait that got the merger talks going. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Six months into Freese Decker's acquisition of Beaumont Health from former controversial CEO John Fox, metro Detroit's biggest hospital system is suffering from a pandemic of red ink. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. A source told me that Barbee was highly regarded among Spectrums Black employees but was frustrated by his inability to achieve meaningful change. 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. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Reach Eric Starkman at: eric@starkmanapproved.com. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who . In what will likely be his final FU to Metro Detroit, Fox will depart on Friday. Marshall is big news in Michigan these days, as the state has earmarked more than $1 billion in subsidies for Ford Motor Co. to build an electric battery plant on . 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Beaumont Royal Oak nurses must sometimes tend to as many as seven at a time. 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. One of the deciding factors in evaluating merging Beaumont and Spectrum will be the financial terms of the deal. Soon after, Fox announced the Advocate Aurora deal. The silence is understandable. Support our reporting by becoming aDeadline Detroit memberfor as little as $3 per month. 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? It isnt clear from Beaumonts stats that the hospitals Covid patients were admitted because of the disease or possibly some other serious ailments. A trade publication quoted Freese Decker today as saying theres widespread enthusiasm in western and southeastern Michigan for the merger. As one source commented: Why doesnt the board just give Fox $25 million to go away?. The resignations were due to working conditions and management dissatisfaction, not Covid. 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. More importantly, I doubt that Spectrums doctors would feel the need to circumvent management in the first place. Spectrums takeover must be approved by Michigan Attorney General Dana Nessel and the Federal Trade Commission. 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. Beaumont CEO Fox and COO Wilson Must Go Now! Hospital plans are designed to incentivize doctors not to order or recommend expensive procedures in order to reduce payouts. 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. 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. 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. Freese Decker cant say she wasnt warned. The scuttlebutt around town is that Beaumont directors believe that a merger is the only way to get rid of Fox. Why would Beaumont nurses want to remain on staff when they can make more money working at a staffing agency? By Eric Starkman. I dont know how we could handle a catastrophe, said a source at Royal Oaks ER. Theres no prestige working at Beaumont anymore. Freese Decker this week toured Beaumont Troy Hospital, and notably neither Fox nor COO Carolyn Wilson were in tow. 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. To be sure, Beaumont isnt alone in suffering from a nursing shortage. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Nursing shortages are causing havoc at other Beaumont hospitals as well. My guess is that if Freed understood how Beaumonts directors stood idly by while Beaumont imploded, hed challenge their appointments regardless. September 15, 2020, 9:36 PM . 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. Virtually all of Fox's senior management team resigned or was . Employees blame them both for Beaumonts implosion. Thats right, CFO Matthew Cox referred to Beaumont as an acquisition, not a merger as Freese Decker and Fox led the media to believe. The FTC is headed by Lina Khan, a Democrat appointed by Biden and sworn in last June 15 to a three-year term. Fox that year was paid $5.9 million. Gretchen Whitmer were silent. ", a month membership or a one-time donation, Beaumont Health's Merger Partner Reveals its Disingenuous, Deceptive and Disrespectful Nature, Spectrum Healths Black Employees Explore Class Action Lawsuit Alleging Systemic Racism, Beware! Around town is that if Freed understood how Beaumonts directors stood idly by while imploded... Hospital, and notably neither Fox nor COO Carolyn Wilson were in tow virtually of. Revenues, operates 14 hospitals in the sorry state that it was closing 120 inpatient systemwide... Would mean there wouldnt be one senior executive from Beaumont involved in the management the... Concluded a deal with Akron-based Summa health but backed out despite already received., so they might not yet appreciate the extent of how damaged Beaumont really is stood idly by while imploded!, and notably neither Fox nor COO Carolyn Wilson were in tow been disclosed author of combined... 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