Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. As one source commented: Why doesnt the board just give Fox $25 million to go away?. Reach Eric Starkman at: eric@starkmanapproved.com. 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. 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. John Kerndl and Denise Waters. Grand Rapids business community is small and tight knit, and Spectrum is a major employer in western Michigan. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who . Spectrum CEO Tina Freese Decker will lead the combined company. Beaumont CEO Fox and COO Wilson Must Go Now! Spectrumissued a statement to MiBizabout the disastrous financials reminiscent of the spin Fox served up during his seven-year tenure. As of this writing, Freeds letter received 40 likes and other shows of support, and not a single criticism. 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 . After posting his letter, Freed noted on his LinkedIn page that Beaumont made $167 million from its operations in 2020, which included revenue recognition of $349 million from the CARES Act and FEMA payments for Covid. Also unavailable for clarifications will be Dawn Geisert, Beaumonts former compliance chief. Gretchen Whitmer were silent. Reach Eric Starkman at eric@starkmanapproved.com . 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. Fox didnt disclose how much Beaumont will spend to fund its real estate expansion. A responsible board would have fired Fox months ago and brought in an interim CEO with strong ties to southeastern Michigan to try and stabilize the place. Still, Beaumont is clearly going to be a financial albatross on Spectrums operations for quite some time. "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. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. So What? As often happens when you meld two organizations, the weaker one brings the stronger one down. 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. The metric that matters most is quality of patient care. 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. Disgruntled Staff. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. View Comments. The Detroit News. In addition to her Beaumont debacle, theres been considerable turnover in Spectrums senior ranks, mostly women. The nursing scholarship wont alleviate Spectrums immediate nurse staffing issues. Beaumonts Fox doesnt take pride in the directors he is supposedly accountable to, possibly because he regards them as his subordinates. 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. Spectrum CEO Tina Freese Decker obviously believes the Beaumont merger is already a done deal. That amounts to a Spectrum takeover in my book. 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. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, AG Dana Nessel and Gov. I know little about Fream, who served as Beaumonts vice chair for several years. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. 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. 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. ER sources at Royal Oak and Troy say Covid patients account for a small percentage seeking emergency treatment. Freese Deckers bio said her biggest priority is building a health system that celebrates and reinforces diversity and inclusion for employees, patients, families, and members. Yet the entire BHSH senior management team as best I can tell is as lily white as a loaf of Wonder bread. Rather than having people speculate he was passed over, he chose to step down in advance. He tweeted on Thursday that he was cautiously optimistic about certain aspects of the partnership. That wasnt entirely true. An additional director will also be named. Support our reporting and commentary by becoming a Deadline Detroit member for as little as $3 per month. In a further diss to the community, Beaumont converted a laundry facility into a makeshift morgue without getting permits. 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. 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. However, Beaumont Royal Oak is one of the busiest surgical centers in the country. Working at Beaumont under Fox and his former COO Carolyn Wilson was a hellacious HR experience, and the pandemic worsened the situation. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. Virtually all of Fox's senior management team resigned or was . What, if any, role Wilson will play after the merger hasnt been disclosed. Based on Foxs history, its quite possible it will be terms that most benefit him. Share. To support Deadline Detroit's independent. 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. He's even willing to. There are no bios or photos of Beaumonts other directors, and thats by intent. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. The deal, which was announced Thursday, is still subject to various regulatory approvals. 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. 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. 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. 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. 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. My guess is that if Freed understood how Beaumonts directors stood idly by while Beaumont imploded, hed challenge their appointments regardless. The combined Spectrum and Beaumont operations will temporarily be called BHSH System. Theres no prestige working at Beaumont anymore. Henry Ford Hospital announced this week that it was closing 120 inpatient beds systemwide due to staffing shortages. Spectrums board is certainly a lot tougher on compensation. 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. Spectrum appears to have grown organically, focused on a region it knows well. Freed has vowed he will hold Spectrums directors accountable for the repercussions to his Grand Rapids community. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. 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. Beaumont at one point claimed to have 38,000 employees, but with layoffs and unfilled positions its not clear how many employees remain. 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. He also noted that Beaumont received Medicare advances of $505 million in 2020 that needs to be returned this year. 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. Craig's guest is Eric Starkman, Deadline Detroit contributor and author of the blog Starkman Approved. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. The evidence is overwhelming that when hospitals merge, prices go up. 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,. Freese Decker is likely assured a big pay increase and bonus. 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 . A Grand Rapids television station revealed that operating room OBGYN doctors were posting photos on social media of them holding up surgically removed organ and tissue material as part of a game they likened to The Price Is Right. The report by NBC affiliate WOODis a classic worth watching because the reporter cant believe what shes actually reporting. Those warnings are what led Congress to approve the financial largesse that Beaumont and other hospitals benefited from. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Under their oversight, Beaumont suffered a precipitous decline in reputation and quality of care. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. Freese Decker cant say she wasnt warned. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. A company is headquartered where the CEO is based. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Support our reporting by becoming aDeadline Detroit memberfor as little as $3 per month. Fox is about 70, and given his failed performance, it was a given that he wouldn't lead the combined Spectrum Beaumont entity. Destroying Beaumont and Spectrum Health, Covid Not Responsible for ER Debacles at Beaumont RO and Troy, 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's Merger Partner Reveals its Disingenuous, Deceptive, Disrespectful Nature, Spectrum Healths Black Employees Explore Class Action Lawsuit Alleging Systemic Racism, Beware! Reach the writer ateric@starkmanapproved.com. 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. Disgruntled Staff. Freese Decker this week toured Beaumont Troy Hospital, and notably neither Fox nor COO Carolyn Wilson were in tow. 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. Combining Spectrum with Beaumont would be akin to Target, whose management is respected and its brand has a loyal following, merging with Macys, a troubled chain whose flagship store in midtown Manhattan has lost its luster much like Beaumont Royal Oak. Turns out Beaumonts reported $4 billion reserve also dwindled by the time Fox turned over the keys to Freese Decker. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Henry Ford in Detroit in years past enjoyed an A safety rating. 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. This is Beaumont's latest attempt to merge with another hospital . To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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,. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. The quality of care has declined to such a degree that insiders readily admit they wouldnt entrust their families care to the hospital. John Kerndl, who joined Beaumont in 2016, quit in March. So What? 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. Starkman: Beware! Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Starkman: Why Tree Huggers Must Save This Small Town in Michigan From Ford, 'Detroit In Black And White:' Why We Got Kicked Off 910 AM, Randy Wimbley Leaving Fox 2 After a Decade on the Air. to Michigan Tweet. Whats notable about the joint announcement and Beaumonts internal communications is whats missing. But unlike Beaumont, Henry Fords staffing issues arent due to mismanagement. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. A responsible attorney general would have removed Fox, board chair Julie Fream, and the other Beaumont directors who stood idly by a long time ago. BHSH is what Spectrum calls its combined Beaumont and Spectrum operations. 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. 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. 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? Beaumont merger is already a done deal er sources at Royal Oak is one of the partnership immediate staffing... 'S Republican Party, theres been considerable turnover in Spectrums senior Ranks mostly... Suffered a precipitous decline in reputation and quality of care has declined such! 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