The Chief People Officer position is listed as open, indicating that Ries isnt getting the top HR job at BHSH. Beaumont was once mostly staffed by highly skilled veterans, among the best in healthcare. Also, if you wish to support Deadline Detroit's. 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. 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. Today is indeed a historic day. The joint release promotes the benefits of Priority Health, Spectrums insurance plan. The list goes on. 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. It comes as no surprise that Spectrums takeover received the green light. Beaumont, consistent with its practice of putting a spin on undesirable news, notified employees that it is making "good progress" toward . 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 . The situation has become so acute that an ICU patient was recently treated in Troys ER. In a further diss to the community, Beaumont converted a laundry facility into a makeshift morgue without getting permits. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. 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. By Eric Starkman. Beaumont spent nearly $2 million on union busters when nurses at the Royal Oak hospital attempted to organize in 2019. I can suspect what the problem is but, without transparency, I cant know.. Funny we only now are learning just how badly Fox ran Beaumont into the ground. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. 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. 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,. Spectrums four-person communications team also ignored a request for comment. More importantly, I doubt that Spectrums doctors would feel the need to circumvent management in the first place. 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. Confidentiality is assured. 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.. That would mean there wouldnt be one senior executive from Beaumont involved in the management of the combined hospital systems. But ER nurses are angry with Melissa Foreman Lovell, Troys chief nursing officer, who they say rarely appears at the hospital. Reach Eric Starkman at: eric@starkmanapproved.com. That wasnt entirely true. Beaumonts board failed in their duties overseeing the hospital system they were responsible for protecting. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. 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. He's even willing to. At Beaumont's Royal Oak, Troy, and Grosse Pointe hospitals an elite team of more than 70 anesthesiologists trained and experienced with intubation performed all the procedures. The FTC has a backlog of merger applications, and it could take months before it decides on the Spectrum/Beaumont deal. Grand Rapids business community is small and tight knit, and Spectrum is a major employer in western Michigan. Beaumont CEO John Fox will forever be remembered in the Detroit area as a con man. 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. Spectrum, with $6.9 billion in revenues, operates 14 hospitals in the western side of the stateand has 30,000 employees. Under their oversight, Beaumont suffered a precipitous decline in reputation and quality of care. . To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Beaumont is awaiting approval to be rescued by Spectrum Health in Grand Rapids. 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. Susan Grant, the chief nursing officer for all of Beaumont, has her primary home in Atlanta. Share. For years, former Beaumont CEO John Fox was paid more than $6 million annually because of his supposedly deft fiscal management. 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. Reach Eric Starkman at: eric@starkmanapproved.com. April 18, 2020, 3:27 PM . Many executives ask me privately, How many Black people do I have to have?. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Companies often create diversity positions for window dressing purposes. 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. 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. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Though a far cry from what Beaumont Health was before CEO John Fox and COO Carolyn Wilson arrived, Spectrum is a quality healthcare company overseen by a responsible board comprised of directors who are pillars of western Michigans business communities. 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. 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. The Detroit Free Press quotedSpectrum's Freese Decker as saying, Today is a historic day. Its one of the rare instances where shes made a statement of undeniable truth. We talk with many of them, Joanne Giardini-Russell, a Brighton Medicare consultant posted on Freeds LinkedIn page. To support Deadline Detroit's independent. Spectrum no doubt knew that Fox was desperate to unload Beaumont, so Freese Decker had him by the cajones. Spectrumreportedthat Beaumonts operations already have racked up nearly $100 million in losses. Far from it. Whats notable about the joint announcement and Beaumonts internal communications is whats missing. The deal, which was announced Thursday, is still subject to various regulatory approvals. Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. The promised dual headquarters was also BS. These contracted doctors also were responsible for setting up a Covid-19 ICU unit at Beaumont Troy. Share. 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. Hospital plans are designed to incentivize doctors not to order or recommend expensive procedures in order to reduce payouts. 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. 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. Is that still on track given Beaumonts oceans of red ink? Based on Foxs history, its quite possible it will be terms that most benefit him. Getting more Americans vaccinated is widely believed the ticket to saving lives and preventing hospitals from being overrun with Covid patients at deaths door. Its a vicious cycle, one that I doubt Spectrum has figured out how to solve. Spectrums board is certainly a lot tougher on compensation. Wright Lassiter III, president and CEO of Henry Ford Health System, is chair of the AHA. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. 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. Fox also disclosed that Beaumont has earmarked $40 million to purchase state-of-the-art beds, some of which are already being delivered. Fox that year was paid $5.9 million. 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.. The FTCs approval isnt certain, as President Biden has asked the agency to be more critical of mergers. In its announcement to employees, Beaumont said the merged company will maintain dual headquarters in Southfield and Grand Rapids, an economically inefficient move if true but it likely isnt. 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. A company is headquartered where the CEO is based. (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. Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. Spectrum CEO Tina Freese Decker obviously believes the Beaumont merger is already a done deal. February 02, 2022, 4:58 PM . Beaumont does not have a good reputation regarding how they treat employees. By Eric Starkman Beaumont Health CEO John Fox has no shame. Israel relies nearly 100 percent on Pfizer vaccines, while the U.S. also has a prevalence of Moderna and J&J vaccines. 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. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. A traditional Bachelor of Science degree in nursing is typically four years. Indiana University Health has 16 hospitals and 36,000 employees. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. 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. A trade publication quoted Freese Decker today as saying theres widespread enthusiasm in western and southeastern Michigan for the merger. The quality of care has declined to such a degree that insiders readily admit they wouldnt entrust their families care to the hospital. As often happens when you meld two organizations, the weaker one brings the stronger one down. 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. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. 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. Reach Eric Starkman at eric@starkmanapproved.com . Beaumonts orthopedic surgeons, ranked among the best in the country, are doing their lucrative joint replacement surgeries at area ambulatory centers. That's bad news for Metro Detroit's biggest hospital . To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. All of Spectrums top executives are based in Grand Rapids, which is understandable since none of Foxs top lieutenants remained with the company. 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. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. 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. Beaumont spokesman Mark Geary ignored a request for comment, which he typically does. By Eric Starkman During the Covid pandemic, a hospital's safety practices are more. 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. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Michael Freed doesn't "see any value in this merger. Spectrum was targeting a $156 million operating profit. Hes even willing to exploit the publics fear of Covid to distract from his own mismanagement. Spectrums financial statements indicate that cash and investments from the acquisition was $3.2 billion. 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. 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. By comparison, BHSH will have 22 hospitals and 64,000 employees. In addition to her Beaumont debacle, theres been considerable turnover in Spectrums senior ranks, mostly women. Spectrum reported that Beaumont's operations already have racked up nearly $100 million in losses. She never followed up with a comment. 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. Support our reporting by becoming aDeadline Detroit memberfor as little as $3 per month. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Spectrum is a competently run company on an upward trajectory, while Beaumont is a very damaged goods operation. Corewell Health has appointed Dr. Daniel Carey as the new president for its Beaumont Hospital campus in Royal Oak. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. 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. Lewis, the board chair, was replaced earlier this month by Julie Frehm, president and CEO of the Original Equipment Suppliers Association. Fox didnt disclose how much Beaumont will spend to fund its real estate expansion. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. If (Beaumonts) operating margins are adequate, and they have plenty of cash, whats the problem? Reach Eric Starkman at: eric@starkmanapproved.com. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. 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. 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. John Kerndl and Denise Waters. Eight will come from Spectrum, including Freese. By that measure Fox, Wilson, and Wood have poor performance scorecards. Beaumont Dearborn also is receiving military assistance to help the hospital manage its Covid patient load. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Those warnings are what led Congress to approve the financial largesse that Beaumont and other hospitals benefited from. 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." It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. 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. The financial terms of the deal will reveal whether Freese Decker is as touchy-feely as she appears or whether she can be quite ruthless when a lucrative financial opportunity presents itself. Disgruntled Staff. 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. 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. 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. Fox took his marching orders from John Lewis, a retired Comerica executive who came from Oakwood and was named chairman of the combined organizations. Tina Freese Decker, president and CEO of Spectrum, is chair of the Michigan Health & Hospital Association. The American Hospital Association (AHA), the trade group focused on promoting the financial interests of nonprofit hospitals and their managements, is a major lobbying force in Washington. 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. 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. Disgruntled Staff. By Eric Starkman. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. The Detroit News. 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. Also unavailable for clarifications will be Dawn Geisert, Beaumonts former compliance chief. 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.. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. "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. Jane Jordan, Beaumonts general counsel, is said to have stuck around only to help Fox negotiate a merger deal. He tweeted on Thursday that he was cautiously optimistic about certain aspects of the partnership. Maybe they dont teach this at the University of Iowa from where Freese Decker received her Master of Health Administration, but when a hospital spends nearly $2 million as John Fox did to intimidate nurses at his flagship Royal Oak hospital and derailed a unionizing attempt, it creates bad blood. 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. Beaumonts Fox doesnt take pride in the directors he is supposedly accountable to, possibly because he regards them as his subordinates. That could further worsen Beaumonts nursing shortage. 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. Said a veteran Troy ER source: Ive never seen anything like this in all my years of nursing. So What? Whats becoming increasingly obvious is how Freese Decker, like John Fox, is prone to making public statements that have no basis in fact. 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. 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. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. Studies also show that hospital mergers also result in a decline in patient care. If Michigan had a competent attorney general or a governor with a healthcare interest beyond abortion rights, the deal would have been derailed. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? In a major blow to the hospital, Reza Dabir, Dearborns top cardiothoracic surgeon, resigned to join Ascension Health. Its totally bizarre.. Even when Fox announces a merger deal with Spectrum, theres still no guarantee it will go through. Instead, thanks to aggressive cost cutting and other misguided decisions by Fox and COO Carolyn Wilson, Beaumont imploded. 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. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. 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 . 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. 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. Inexperienced nurses
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. The terms of the deal were so obscenely favorable to Advocate Aurora that Rep. Andy Levin, whose district includes Beaumont Royal Oak, announced he would oppose the deal. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. 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. Understandably, Spectrum is a more profitable hospital system, but its profits also are bolstered by its lucrative Priority Health insurance arm. Southeastern Michigan residents shouldnt look to Rep. Andy Levin to save the day. 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