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. to Michigan Tweet. Reach the writer ateric@starkmanapproved.com. Freese Decker held various strategic and operational roles before being named to the top job in 2018. As often happens when you meld two organizations, the weaker one brings the stronger one down. Beaumonts flagship Royal Oak hospital only garnered a four-star rating and its other hospitals earned two-and three-star ratings. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. Why would Beaumont nurses want to remain on staff when they can make more money working at a staffing agency? Corewell Health has appointed Dr. Daniel Carey as the new president for its Beaumont Hospital campus in Royal Oak. April 18, 2020, 3:27 PM . It isnt clear from Beaumonts stats that the hospitals Covid patients were admitted because of the disease or possibly some other serious ailments. Beaumont Royal Oak nurses must sometimes tend to as many as seven at a time. 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. The writer, a Los Angeles freelancer, 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. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. Ohios AG has won a series of landmark settlements taking on healthcare companies. 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. 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." Seven Failed Beaumont Directors Will Serve on Board If Spectrum Merger Gets Approval Tweet. 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. Fox also disclosed that Beaumont has earmarked $40 million to purchase state-of-the-art beds, some of which are already being delivered. Understandably, Spectrum is a more profitable hospital system, but its profits also are bolstered by its lucrative Priority Health insurance arm. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Beaumont Troy is a Level II and must also be prepared to handle a wide range of emergencies. Spectrums prices are higher than Beaumonts, as the hospital network has significantly less competition in western Michigan. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. To be sure, Beaumont isnt alone in suffering from a nursing shortage. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. 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. Spectrumreportedthat Beaumonts operations already have racked up nearly $100 million in losses. 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 situation has become so acute that an ICU patient was recently treated in Troys ER. She bolted last month. Freed was CFO of Grand Rapids-based Spectrum Health for nearly 19 years, and later headed the hospital companys lucrative Priority Health insurance arm for six years. Spectrum is a competently run company on an upward trajectory, while Beaumont is a very damaged goods operation. To support Deadline Detroit's independent. Support our reporting by becoming aDeadline Detroit memberfor as little as $3 per month. So What? Fox isnt the only hospital executive looking to exploit the perception that the unvaccinated are responsible for wreaking havoc. According to one source, Beaumont at least until recently had more than 3,000 job openings. Disgruntled Staff. A Zoom video conference call that was leaked this week among physicians and the marketing director of a North Carolina hospital involved a discussion on how to manipulate Covid patient stats to make them more scary to the public. Henry Ford also said the unvaccinated were exacerbating its staff shortages. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. 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. 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. View Comments. Said Kevin Cawley, a Michigan health care consultant: The only possible value I could identify (for the merger) was in national and international physician recruitment, and that frankly is a stretch.. Henry Ford in Detroit in years past enjoyed an A safety rating. 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. Less readily understood is why Spectrum would want to do a deal. Fox that year was paid $5.9 million. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Fox, who owns homes in Atlanta and North Carolina, cant be bothered to even create the appearance that he cares about Beaumonts future. 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? Henry Ford Hospital announced this week that it was closing 120 inpatient beds systemwide due to staffing shortages. Spectrums due diligence team will be unable to get clarifications on Beaumonts financials from the companys CFO because it doesnt have one. 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. The release, which Fream presumably signed off on, said her appointment was part of a normal governance leadership rotational process.. To the distaste of the pediatric heads colleagues, Susick walked him out of the hospital in front of his staff. 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. 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.. Fox has a change of control clause in his contract, meaning he will likely receive a lucrative exit package. Allowing them to continue profiting from their mismanagement would undermine Spectrum managements credibility from the get-go. Even Beaumont employees suffering from myopia can read this writing . Also unavailable for clarifications will be Dawn Geisert, Beaumonts former compliance chief. Eight will come from Spectrum, including Freese. The resignations were due to working conditions and management dissatisfaction, not 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. 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. In addition to her Beaumont debacle, theres been considerable turnover in Spectrums senior ranks, mostly women. 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. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. BHSH is what Spectrum calls its combined Beaumont and Spectrum operations. 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. John Kerndl and Denise Waters. Beaumont reported operating revenues of $4.6 billion in 2020 and is only an eight-hospital system. 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 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. Beaumont CEO Fox and COO Wilson Must Go Now! 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.. 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. Beaumont, consistent with its practice of putting a spin on undesirable news, notified employees that it is making "good progress" toward . Board chair Fream, who holds a Harvard MBA, told The Detroit News that Beaumont's board used an "independent consultant" to determine Fox's compensation. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. Its a no-brainer to understand why Fox desperately needs to pull off the Spectrum merger. ", a month membership or a one-time donation, Beaumont Health's Merger Partner Reveals its Disingenuous, Deceptive and Disrespectful Nature, Spectrum Healths Black Employees Explore Class Action Lawsuit Alleging Systemic Racism, Beware! Craig's guest is Eric Starkman, Deadline Detroit contributor and author of the blog Starkman Approved. Share. 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. That wasnt entirely true. More importantly, I doubt that Spectrums doctors would feel the need to circumvent management in the first place. 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. Beaumont is having difficulty attracting mid- and lower-level employees as well. According to an email obtained by the Detroit TV station, Beaumont transferred its Covid patients because the CEO said the hospital system was losing too much money treating them. Lewis previously served on the board of one of Beaumonts predecessor companies and likely didnt want to continue after Beaumont completed its merger. The reason Royal Oaks ER, Beaumonts flagship hospital, is often operating at 60 percent capacity because it doesnt have sufficient staff. Reach Eric Starkman at: eric@starkmanapproved.com. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. Fox is about 70, and given his failed performance, it was a given that he wouldn't lead the combined Spectrum Beaumont entity. 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. They say waits extending six hours and beyond stem from a chronic shortage of inpatient nurses thats forced the closing of various wards. Starkman: Prominent Beaumont Cardiologist Calls for Ouster of Corporate Leaders, 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. . Private rooms are increasingly critical during the pandemic because shared rooms significantly increase the number of medical staff and guests entering, thereby increasing the risk to both patients. Beaumont Royal Oak in the past 18 months has lost more than a dozen prominent surgeons, half of its fellowship trained anesthesiologists, more than 50 nurse anesthetists, and dozens of nurses. The Chief People Officer position is listed as open, indicating that Ries isnt getting the top HR job at BHSH. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Financially, the pandemic was very good to Beaumont, as the hospital system pocketed an additional $1 billion for its $2.5 billion reserve kitty while furloughing and terminating hundreds of employees. Fox and spinmeister Geary have a history of making statements that are deceptive and misleading, a compilation of which can be found here. 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. Freese Decker this week toured Beaumont Troy Hospital, and notably neither Fox nor COO Carolyn Wilson were in tow. As of this writing, Freeds letter received 40 likes and other shows of support, and not a single criticism. Beaumont was once mostly staffed by highly skilled veterans, among the best in healthcare. Based on Foxs history, its quite possible it will be terms that most benefit him. 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. 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. That could further worsen Beaumonts nursing shortage. 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. In April 2020, at the height of Michigan's pandemic, Metro Detroit's biggest hospital system called Beaumont Health without explanation closed its facility designated to treat Covid patients . If 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. 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. Spectrum, with $6.9 billion in revenues, operates 14 hospitals in the western side of the stateand has 30,000 employees. Spectrum appears to have grown organically, focused on a region it knows well. To support Deadline Detroit's independent. Reach Eric Starkman at eric@starkmanapproved.com . 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. Employees blame them both for Beaumonts implosion. 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. Under their oversight, Beaumont suffered a precipitous decline in reputation and quality of care. By Eric Starkman Beaumont Health CEO John Fox has no shame. 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. He's even willing to. Freed is seemingly unaware of how desperate Beaumont CEO John Fox is to find a merger partner and complete the sale before year-end. We talk with many of them, Joanne Giardini-Russell, a Brighton Medicare consultant posted on Freeds LinkedIn page. Is that still on track given Beaumonts oceans of red ink? The list goes on. 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. Companies often create diversity positions for window dressing purposes. 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. 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. I can suspect what the problem is but, without transparency, I cant know.. Have you tried to find Beaumont Healths financial statements? Freed asks. Giving some of them oversight over a considerably bigger hospital system is reckless and irresponsible. They are looking at diversity as a numbers game. 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