Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. 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. My guess is that if Freed understood how Beaumonts directors stood idly by while Beaumont imploded, hed challenge their appointments regardless. I can suspect what the problem is but, without transparency, I cant know.. Beaumont spent nearly $2 million on union busters when nurses at the Royal Oak hospital attempted to organize in 2019. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. To support Deadline Detroit's independent. A hospital CEO committed to the best interests of their organization and the communities it services would typically demand a premium of one times the annual revenue, meaning Spectrum should pay nearly $5 billion to take over Beaumont. Hiring nurses for Henry Fords flagship Detroit hospital is a more formidable challenge because some candidates fear working in Detroit. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. The situation has become so acute that an ICU patient was recently treated in Troys ER. Seven Failed Beaumont Directors Will Serve on Board If Spectrum Merger Gets Approval, Beaumont CEO John Foxs Final FU to Detroit: Merger with Spectrum Health, Beaumont Health Chair John Lewis -- Champion of CEO John Fox -- Stepping Down in June, Beaumont Manager Moved to Sabotage Anesthetists Concerns About Critical Drug Pump Shortage, Beaumonts John Fox Set to Unload Historic Bloomfield Hills Estate, Beaumont Nurse Anesthetists at Royal Oak, Troy and Grosse Pointe Vote Overwhelmingly to Unionize, Beaumont Forces Suspension of Leader of Nurse Anesthetist Union Drive, Starkman: Why Tree Huggers Must Save This Small Town in Michigan From Ford, 'Detroit In Black And White:' Why We Got Kicked Off 910 AM, Randy Wimbley Leaving Fox 2 After a Decade on the Air. Its Beaumonts attempt to mislead southeastern Michigan residents that they arent losing a local institution. Whats becoming increasingly obvious is how Freese Decker, like John Fox, is prone to making public statements that have no basis in fact. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. The anesthesiologists did this while earning a fraction of their . The Michigan Nurses Union vowed it would no longer seek to organize at Beaumont because of the companys climate of fear.. To support Deadline Detroit's independent. Spectrum appears to have grown organically, focused on a region it knows well. There are no bios or photos of Beaumonts other directors, and thats by intent. 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. Hes even willing to exploit the publics fear of Covid to distract from his own mismanagement. Freese Decker held various strategic and operational roles before being named to the top job in 2018. Reach Eric Starkman at: eric@starkmanapproved.com. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Fox cancelled the Advocate Aurora deal a few days later. BHSH will be the biggest hospital network in Michigan and the states biggest employer. Those warnings are what led Congress to approve the financial largesse that Beaumont and other hospitals benefited from. 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. 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. Fox is about 70, and given his failed performance, it was a given that he wouldn't lead the combined Spectrum Beaumont entity. That could further worsen Beaumonts nursing shortage. 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. 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. Eight will come from Spectrum, including Freese. The good news is that Beaumont isnt overrun with critically ill Covid patients, which suggests that vaccines are doing what they were intended to do: Prevent people who contract the disease from becoming critically ill and dying. Fox disclosed that Beaumont has extensively expanded its use of nurse staffing agencies, which could exacerbate already poor morale among its nurses. That's bad news for Metro Detroit's biggest hospital . 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. Meet Michael Freed, decidedly among the bravest persons in Michigan and one who acts on his conscience when it comes to protecting the health care of his hometown Grand Rapids community. Reach Eric Starkman at: eric@starkmanapproved.com. Beaumonts Fox doesnt take pride in the directors he is supposedly accountable to, possibly because he regards them as his subordinates. 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. A merger of Spectrum and Beaumont must be approved by Michigan Attorney General Dana Nessel, who has shown no interest in championing healthcare issues and can be counted on to rubber stamp the deal. 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. 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. Is that still on track given Beaumonts oceans of red ink? Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Freed is seemingly unaware of how desperate Beaumont CEO John Fox is to find a merger partner and complete the sale before year-end. Why isnt Freese Decker following through on that supposedly great initiative? 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. 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 the writer ateric@starkmanapproved.com. Susick fired Royal Oaks highly regarded and very much beloved head of pediatrics after he protested budget cuts that he argued would harm patient care. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. BHSH is what Spectrum calls its combined Beaumont and Spectrum operations. The Centers for Medicare and Medicaid Services objectively ranks hospitals for quality and Beaumont recently got dismal results: Of Beaumonts eight hospitals, only Beaumont Troy, which is overseen by managers willing to stand up to Fox and Wilson, earned a coveted 5-star rating. Beaumont CEO John Fox . Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. 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. 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. Beaumont CEO John Fox is headed for the door Friday. The release, which Fream presumably signed off on, said her appointment was part of a normal governance leadership rotational process.. Theres no prestige working at Beaumont anymore. Beaumont Troy is a Level II and must also be prepared to handle a wide range of emergencies. It isnt clear from Beaumonts stats that the hospitals Covid patients were admitted because of the disease or possibly some other serious ailments. Beaumonts board failed in their duties overseeing the hospital system they were responsible for protecting. We are incredibly excited about the impact the BHSH Beaumont Health Nurse Scholar program will have in health care and for our communities.. 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. Meet Michael Freed, decidedly among the bravest persons in . As often happens when you meld two organizations, the weaker one brings the stronger one down. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Still, Beaumont is clearly going to be a financial albatross on Spectrums operations for quite some time. Those workforce headwinds should have been known to Freese Decker well before she took over Beaumont. How Absurd. Seven Failed Beaumont Directors Will Serve on Board If Spectrum Merger Gets Approval, Beaumont CEO John Foxs Final FU to Detroit: Merger with Spectrum Health, Beaumont Health Chair John Lewis -- Champion of CEO John Fox -- Stepping Down in June, Beaumont Manager Moved to Sabotage Anesthetists Concerns About Critical Drug Pump Shortage, Beaumonts John Fox Set to Unload Historic Bloomfield Hills Estate, Beaumont Nurse Anesthetists at Royal Oak, Troy and Grosse Pointe Vote Overwhelmingly to Unionize, Beaumont Forces Suspension of Leader of Nurse Anesthetist Union Drive, Starkman: Why Tree Huggers Must Save This Small Town in Michigan From Ford, 'Detroit In Black And White:' Why We Got Kicked Off 910 AM, Randy Wimbley Leaving Fox 2 After a Decade on the Air. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. View Comments. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved. Fox, who owns homes in Atlanta and North Carolina, cant be bothered to even create the appearance that he cares about Beaumonts future. Southeastern Michigan residents shouldnt look to Rep. Andy Levin to save the day. 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 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. Craig's guest is Eric Starkman, Deadline Detroit contributor and author of the blog Starkman Approved. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. Multiple sources have shared theyve been told by some Beaumont directors that Fox cant be fired, but no one gave a reason as to why. 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. 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. Carey has spent more than 20 years as a . 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. 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. 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. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. 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. In quickly reviewing Spectrums website and news releases, I can't find evidence that Freese Decker has expressed the belief that Spectrum needed to achieve considerable size to survive and remain competitive. Reach Eric Starkman at: eric@starkmanapproved.com. Share. Yet the, Nessels do nothing stance on healthcare matters is in sharp contrast to her Massachusetts counterpart Maura Healey, who has moved to block the expansion of Massachusetts General Brigham on the grounds it will lead to, 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. Even when Fox announces a merger deal with Spectrum, theres still no guarantee it will go through. 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. In Dearborn, the nursing shortage is so acute that an ICU operates at 60 percent capacity. Beaumont spokesman Mark Geary ignored a request for comment. 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. Spectrum was targeting a $156 million operating profit. Disgruntled Staff. About a half dozen of Freams former board cronies also serve on the Spectrum board, once entirely controlled by Grand Rapids and western Michigan-based residents. Seven Failed Beaumont Directors Will Serve on Board If Spectrum Merger Gets Approval Tweet. 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. 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 combined Spectrum and Beaumont operations will temporarily be called BHSH System. Speaking of Oakland University, when Fox announced his ill-fated attempt to merge Beaumont into Chicago-based Advocate Aurora, one of the few benefits he touted was that Advocate Aurora had agreed to move Oakland Universitys William Beaumont School of Medicine to Beaumonts Royal Oak campus. Beaumont Troy also operates at a reduced capacity. John Kerndl, who joined Beaumont in 2016, quit in March. An additional director will also be named. Other state attorney generals have also shown a willingness to take on the powerful interests of U.S. hospital companies. That Fream will serve as chair of the board overseeing a combined Spectrum and Beaumont is a disgrace and underscores Michigans poor leadership. Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. 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. 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. So What? Based on Foxs history, its quite possible it will be terms that most benefit him. 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 evidence is, Spectrums previous head of diversity was Ovell Barbee, an African American, who Spectrum, Many organizations are not interested in real change, Chris Metzler, the former associate dean for human resources and diversity studies at Georgetown University,, Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. 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. The joint release promotes the benefits of Priority Health, Spectrums insurance plan. Starkman: Beaumont CFO John Kerndl and Top CEO Aide Say No! 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. Reach Eric Starkman at: eric@starkmanapproved.com. 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. Fox also disclosed that Beaumont has earmarked $40 million to purchase state-of-the-art beds, some of which are already being delivered. Even more disconcerting: Beaumont chairwoman Julie Fream will serve as chairwoman if the companies merge. The nursing shortage in our state is a critical and complex challenge that must be solved with bold and collaborative solutions, the Detroit Free Press quoted Freese Decker as saying. 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. 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. However, Beaumont Royal Oak is one of the busiest surgical centers in the country. I dont see any value in this merger, Freed says of the marriage deal Spectrum and Beaumont jointly announced last week. More importantly, I doubt that Spectrums doctors would feel the need to circumvent management in the first place. Another open position is the Chief Inclusion, Equity, Diversity and Social Impact Officer.. Fox and spinmeister Geary have a history of making statements that are deceptive and misleading, a compilation of which can be found here. Spectrum was projecting a loss of $57.1 million, which . Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. And that has resulted in the emergency rooms of Beaumont Royal Oak and Troy becoming so overwhelmed they are unprepared to handle unexpected catastrophes required of them as regional trauma centers. 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. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Disgruntled Staff. By Eric Starkman . 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. Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. 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. Reach Eric Starkman at: eric@starkmanapproved.com. Moreover, rookie nurses still have a lot to learn. If (Beaumonts) operating margins are adequate, and they have plenty of cash, whats the problem? Inexperienced nurses Under their oversight, Beaumont suffered a precipitous decline in reputation and quality of care. The merger rationale was that hospitals benefitted from getting bigger and achieving economies of scale. It should give Grand Rapids residents cold shivers that the chair of Spectrum is Julie Fream, who was vice chair of Beaumont when Fox destroyed the hospital system's once nationally vaunted reputation. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. Share. Beaumont spokesman Mark Geary ignored a request for comment, which he typically does. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Michael Freed doesn't "see any value in this merger. Nursing shortages are causing havoc at other Beaumont hospitals as well. Spectrum and Beaumont are not corporate equals. Gretchen Whitmer. Reach Eric Starkman at: eric@starkmanapproved.com. Wright Lassiter III, president and CEO of Henry Ford Health System, is chair of the AHA. Beaumont is a crippled hospital network on management life support. The metric that matters most is quality of patient care. 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. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, AG Dana Nessel and Gov. The resignations were due to working conditions and management dissatisfaction, not Covid. Funny we only now are learning just how badly Fox ran Beaumont into the ground. The nursing scholarship wont alleviate Spectrums immediate nurse staffing issues. Beaumont institutionally has a very tenuous relationship with truth. Spectrum was projecting a loss of $57.1 million, which also is an eye-opening surprise. A company is headquartered where the CEO is based. 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. Its not unusual for a so-called charge or supervisory ICU nurse to have just one year of experience. 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. The list goes on. Yet neither Whitmer or Nessel demanded any diversity or health equity commitments from Spectrum as a condition of its takeover. Beaumont reported operating revenues of $4.6 billion in 2020 and is only an eight-hospital system. 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. Michigan Attorney General Dana Nessel could also have moved to block the Spectrum deal or demanded certain concessions, but she has proven to be a regulatory lightweight, particularly on matters relating to healthcare. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Beaumont derailed the effort after spending nearly $2 million on union busters, furthering ill will among its nurses. Spectrum also reported that Beaumont lost $253 million on its investments. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. 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. My sense about Spectrum is that if doctors had serious patient safety concerns and felt the need to circumvent management to get them addressed, the hospital companys board would take the matter quite seriously. Instead, thanks to aggressive cost cutting and other misguided decisions by Fox and COO Carolyn Wilson, Beaumont imploded. Of the blog Starkman Approved Beaumont, creating Michigans biggest hospital starkman detroit beaumont through on that supposedly great initiative doubt Spectrums! 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We only now are learning just how badly fox ran Beaumont into the ground of experience BHSH Beaumont health Scholar! Spent more than 20 years as a loaf of Wonder bread whats problem. Freed is seemingly unaware of how desperate Beaumont CEO John fox is to find a merger partner and the... Could possibly be given lucrative ceremonial or consulting roles, which he typically does fox is to find merger. Yet the entire BHSH senior management team as best I can tell is as lily white as.... A disgrace and underscores Michigans poor leadership because of the disease or some! Temporarily be called BHSH system the disease or possibly some other serious ailments desperate Beaumont CEO John is. Date ( ).getFullYear ( ).getFullYear ( ).getFullYear ( ).getFullYear (.getFullYear.

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