We are incredibly excited about the impact the BHSH Beaumont Health Nurse Scholar program will have in health care and for our communities.. The FTC is headed by Lina Khan, a Democrat appointed by Biden and sworn in last June 15 to a three-year term. For years, former Beaumont CEO John Fox was paid more than $6 million annually because of his supposedly deft fiscal management. BHSH is what Spectrum calls its combined Beaumont and Spectrum operations. Bloomberg on Wednesday posted an editorial warning about the growing merger trend among hospitals, noting that it leads to higher insurance prices. 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 employees and vendors are encouraged to reach out, with confidentiality assured. The nurse anesthetists at Beaumont Royal Oak, Troy and Grosse Pointe hospitals, who are critical to keeping their facilities' lucrative surgery businesses humming, are mad as hell and aren't going to take it anymore. Far from it. Southeastern Michigan residents shouldnt look to Rep. Andy Levin to save the day. Fox trumpeted the deal as a win for Southeastern Michigan because he said Advocate Aurora would invest $1 billion to move the William Beaumont Medical School in Rochester to the Royal Oak campus and upgrade Beaumonts technology. 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. The nursing scholarship wont alleviate Spectrums immediate nurse staffing issues. 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. Spectrums board is certainly a lot tougher on compensation. According to a source, some travel nurses are being paid lucrative wages to work only three or four shifts a week. Spectrums takeover of Beaumont was a deal that should never have been allowed. John Kerndl and Denise Waters. Spectrums financial statements indicate that cash and investments from the acquisition was $3.2 billion. She bolted last month. Beaumont Royal Oak nurses must sometimes tend to as many as seven at a time. 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. Reach Eric Starkman at: eric@starkmanapproved.com. 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. In addition to her Beaumont debacle, theres been considerable turnover in Spectrums senior ranks, mostly women. The metric that matters most is quality of patient care. By Eric Starkman Beaumont Health CEO John Fox has no shame. 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. Carey has spent more than 20 years as a . Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. By comparison, BHSH will have 22 hospitals and 64,000 employees. I know little about Fream, who served as Beaumonts vice chair for several years. To support Deadline Detroit's independent. If Michigan had a competent attorney general or a governor with a healthcare interest beyond abortion rights, the deal would have been derailed. A source told me that Barbee was highly regarded among Spectrums Black employees but was frustrated by his inability to achieve meaningful change. Spectrum no doubt knew that Fox was desperate to unload Beaumont, so Freese Decker had him by the cajones. Reach Eric Starkman at: eric@starkmanapproved.com. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Another open position is the Chief Inclusion, Equity, Diversity and Social Impact Officer.. The quality of care has declined to such a degree that insiders readily admit they wouldnt entrust their families care to the hospital. 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. And given the sorry state of Beaumont resulting from Foxs leadership, its an emergency rescue. Hes even willing to exploit the publics fear of Covid to distract from his own mismanagement. Studies show that when hospitals combine, healthcare prices increase while patient quality declines. Beaumont reported operating revenues of $4.6 billion in 2020 and is only an eight-hospital system. Beaumont spokesman Mark Geary ignored a request for comment. He previously concluded a deal with Akron-based Summa Health but backed out despite already having received regulatory approval. 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. Turns out Beaumonts reported $4 billion reserve also dwindled by the time Fox turned over the keys to Freese Decker. They say waits extending six hours and beyond stem from a chronic shortage of inpatient nurses thats forced the closing of various wards. By that measure Fox, Wilson, and Wood have poor performance scorecards. Fox owns homes in Atlanta and North Carolina, Wilsons primary home is in Grand Rapids, Jordan, Beaumonts chief counsel, commutes from Atlanta, as does Susan Grant, the companys chief nursing officer. 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. Reach Eric Starkman at: eric@starkmanapproved.com. Beaumont Troy is a Level II and must also be prepared to handle a wide range of emergencies. Not a situation one would expect given that Freese Decker said her biggest priority was building a health system that celebrates and reinforces diversity and inclusion.. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. The FTC has a backlog of merger applications, and it could take months before it decides on the Spectrum/Beaumont deal. Beaumont does not have a good reputation regarding how they treat employees. 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. 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 list goes on. 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. 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. The scuttlebutt around town is that Beaumont directors believe that a merger is the only way to get rid of Fox. Beaumont spent nearly $2 million on union busters when nurses at the Royal Oak hospital attempted to organize in 2019. Why would Beaumont nurses want to remain on staff when they can make more money working at a staffing agency? 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. Moreover, rookie nurses still have a lot to learn. Spectrums four-person communications team also ignored a request for comment. Nonprofit hospitals are supposed to manage their investments conservatively, opting for boring short-term duration bonds and other low risk investments. Spectrum CEO Tina Freese Decker obviously believes the Beaumont merger is already a done deal. The expansion is apromising sign that Spectrum is willing to commit money and resources to expand and upgrade Beaumonts facilities and reverse the decline the hospital system has suffered from Foxs extensive cost-cutting during his seven-year reign. Even when Fox announces a merger deal with Spectrum, theres still no guarantee it will go through. Beaumont at one point claimed to have 38,000 employees, but with layoffs and unfilled positions its not clear how many employees remain. 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. Beaumonts orthopedic surgeons, ranked among the best in the country, are doing their lucrative joint replacement surgeries at area ambulatory centers. In June of last year Fox announced he planned to merge Beaumont into Advocate Aurora, a Chicago-based hospital network whose CEO was on record as having insatiableambitious plans. 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. If theyre out there, theyre certainly not easy to find and, no, a few quotes about financials every quarter does not count as transparency, at least not in my book.. Beaumont spokesman Mark Geary ignored a request for comment, which he typically does. Less readily understood is why Spectrum would want to do a deal. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. 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 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. The evidence is overwhelming that when hospitals merge, prices go up. 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. 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. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. ER sources at Royal Oak and Troy say Covid patients account for a small percentage seeking emergency treatment. Its a vicious cycle, one that I doubt Spectrum has figured out how to solve. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. Beaumont Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. 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? Beaumonts flagship Royal Oak hospital only garnered a four-star rating and its other hospitals earned two-and three-star ratings. Companies often create diversity positions for window dressing purposes. Spectrum reported that Beaumont's operations already have racked up nearly $100 million in losses. The silence is understandable. Israel relies nearly 100 percent on Pfizer vaccines, while the U.S. also has a prevalence of Moderna and J&J vaccines. 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. As a result, patients requiring hospital admission must remain in the ER, diverting beds and staff normally dedicated to treating emergencies. In what will likely be his final FU to Metro Detroit, Fox will depart on Friday. That resulted in Beaumont staff nurses working alongside nurses getting paid considerably more money doing the same job, prompting more staff nurses to leave. Beaumont Troy, the only hospital in the companys network with a 5-star ranking for safety from the Centers of Medicare and Medicaid, doesnt have the management strife of Royal Oak. Funny we only now are learning just how badly Fox ran Beaumont into the ground. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Theres no prestige working at Beaumont anymore. His latest story for DeadlineDetroit.com shows that high ranking executives are being let go in advance of the proposed merger with Grand Rapids based Spectrum Health. Yet the Leapfrog safety rating of Henry Fords flagship hospital in Detroit is a C, while its ambulatory center in more affluent West Bloomfield enjoys an A. HFH chief Lassiter is Black, and almost half of the flagship hospitals staff is nonwhite. . Business Starkman: Bloodbath at Beaumont - COO Carolyn Wilson and Top Doctor Ousted; Chief Quality Officer Resigns Tweet Share July 22, 2021, 12:45 PM This columnist, a Los Angeles freelancer,. Reach the writer ateric@starkmanapproved.com. 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. Also fostering ill will is Beaumonts mandate requiring that all employees be vaccinated or be fired. If the proposed merger goes through, seven Beaumont board members will serve on the board of the combined companies. By Eric Starkman . February 02, 2022, 4:58 PM . Spectrum also reported that Beaumont lost $253 million on its investments. Spectrum, with $6.9 billion in revenues, operates 14 hospitals in the western side of the stateand has 30,000 employees. Spectrum and Beaumont are not corporate equals. They are looking at diversity as a numbers game. Spectrums board includes Doug DeVos, co-chair of Amway, whose family is among the most powerful in Michigan. 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 is a crippled hospital network on management life support. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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 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. 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. 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.. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. But unlike Beaumont, Henry Fords staffing issues arent due to mismanagement. 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. 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. 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. The merger could still fall apart if Spectrum has a top-notch duediligence team. Support our reporting by becoming aDeadline Detroit memberfor as little as $3 per month. Beaumont Troy also operates at a reduced capacity. 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. Virtually all of Fox's senior management team resigned or was . To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Spectrumreportedthat Beaumonts operations already have racked up nearly $100 million in losses. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. Fox isnt the only hospital executive looking to exploit the perception that the unvaccinated are responsible for wreaking havoc. 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. 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. Spectrum CEO Tina Freese Decker will lead the combined company. Starkman: Why Beaumont's John Fox Could Haul More Than $30 Million Back to Atlanta Tweet. Beaumont Health CEO John Fox, the Atlanta carpetbagger who destroyed the companys flagship Royal Oak hospital while pocketing more than $20 million for himself, appears close to pulling off what he set out to do from the moment he arrived in Metro Detroit six years ago: Merging southeastern Michigans biggest hospital network out of existence. By Eric Starkman During the Covid pandemic, a hospital's safety practices are more. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. 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 cancelled the Advocate Aurora deal a few days later. These contracted doctors also were responsible for setting up a Covid-19 ICU unit at Beaumont Troy. Beaumont derailed the effort after spending nearly $2 million on union busters, furthering ill will among its nurses. Have you tried to find Beaumont Healths financial statements? Freed asks. 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. Beaumont, consistent with its practice of putting a spin on undesirable news, notified employees that it is making "good progress" toward . 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. Why isnt Freese Decker following through on that supposedly great initiative? Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. He's even willing to. Beaumont is having difficulty attracting mid- and lower-level employees as well. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. 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. By Eric Starkman. Although Spectrum and Beaumont have characterized their combination as a merger, Spectrum is effectively taking over Beaumont. Reach Eric Starkman at: eric@starkmanapproved.com. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. To support Deadline Detroit's independent. 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 Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Lewis, the board chair, was replaced earlier this month by Julie Frehm, president and CEO of the Original Equipment Suppliers Association. The situation has become so acute that an ICU patient was recently treated in Troys ER. How Absurd. 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. If (Beaumonts) operating margins are adequate, and they have plenty of cash, whats the problem? To the distaste of the pediatric heads colleagues, Susick walked him out of the hospital in front of his staff. By Eric Starkman. By Eric Starkman. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. Getting more Americans vaccinated is widely believed the ticket to saving lives and preventing hospitals from being overrun with Covid patients at deaths door. 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