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. There are some serious issues with NorthStar Anesthesia, the Texas-based outsourcing company that Wilson bet the farm on and losing badly so far. Soon after, Fox announced the Advocate Aurora deal. The merger rationale was that hospitals benefitted from getting bigger and achieving economies of scale. She bolted last month. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. A traditional Bachelor of Science degree in nursing is typically four years. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. Beaumont CEO Fox and COO Wilson Must Go Now! Henry Ford Hospital announced this week that it was closing 120 inpatient beds systemwide due to staffing shortages. The companys chief revenue officer left earlier this month. Spectrum also is comfortable issuing misleading or deceptive statements, so culturally Beaumont is possibly a great fit. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. Starkman: Beaumont's FU to Metro Detroit and its Covid-19 Workers Tweet. 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. Based on Foxs history, its quite possible it will be terms that most benefit him. Its Beaumonts attempt to mislead southeastern Michigan residents that they arent losing a local institution. February 02, 2022, 4:58 PM . Jane Jordan, Beaumonts general counsel, is said to have stuck around only to help Fox negotiate a merger deal. 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. Fox and Geary have referred to the Spectrum transaction as a merger and a partnership. Fox has disclosed that he will depart once the deal is completed, and Id be surprised if Grant and Jordan plan to stick around. It is said that you can judge a person by the company they keep. 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. 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.. To support Deadline Detroit's independent. Lewis resigned as chair just prior to Fox announcing Spectrums takeover and left the board in December. 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. Beaumonts orthopedic surgeons, ranked among the best in the country, are doing their lucrative joint replacement surgeries at area ambulatory centers. 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. Beaumont CEO John Fox is headed for the door Friday. Share. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Despite the pandemic, which has forced Spectrum to call for military assistance to support its flagship hospital, CEO Tina Freese Decker recently disclosed that shes been focused on integrating Spectrum and Beaumont, creating Michigans biggest hospital system as well as the biggest employer. As Deadline Detroit recently reported, Beaumonts once-bustling endoscopy suite, where a patient died undergoing a routine colonoscopy in January, has suffered a rash of nurse resignations and can barely operate at 50 percent capacity. Beaumont CEO Fox and COO Wilson Must Go Now! Spectrum was targeting a $156 million operating profit. By Eric Starkman. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? . Nonprofit hospitals are supposed to manage their investments conservatively, opting for boring short-term duration bonds and other low risk investments. 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. Share. 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. Spectrums board is certainly a lot tougher on compensation. Even Beaumont employees suffering from myopia can read this writing . 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. I dont see any value in this merger, Freed says of the marriage deal Spectrum and Beaumont jointly announced last week. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. 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. Spectrum also reported that Beaumont lost $253 million on its investments. Nessel also has made that claim. The release, which Fream presumably signed off on, said her appointment was part of a normal governance leadership rotational process.. Spectrumissued a statement to MiBizabout the disastrous financials reminiscent of the spin Fox served up during his seven-year tenure. Seven Failed Beaumont Directors Will Serve on Board If Spectrum Merger Gets Approval Tweet. . We are incredibly excited about the impact the BHSH Beaumont Health Nurse Scholar program will have in health care and for our communities.. 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. Beaumont spokesman Mark Geary ignored a request for comment, which he typically does. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? These contracted doctors also were responsible for setting up a Covid-19 ICU unit at Beaumont Troy. Hospital plans are designed to incentivize doctors not to order or recommend expensive procedures in order to reduce payouts. Thats how Beaumont ended up in the sorry state that it did. Even more disconcerting: Beaumont chairwoman Julie Fream will serve as chairwoman if the companies merge. ER sources at Royal Oak and Troy say Covid patients account for a small percentage seeking emergency treatment. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Those workforce headwinds should have been known to Freese Decker well before she took over Beaumont. 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. 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. Freed doesnt disclose his hunch about Beaumonts financials, which received less oversight than he possibly knows. 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. 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. 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. A trade publication quoted Freese Decker today as saying theres widespread enthusiasm in western and southeastern Michigan for the merger. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Starkman: America's Mistakenly Entitled Restaurant Workers February 08, 2023, 12:24 PM - Starkman Approved 'The Week That Was:' Why Police Have Groups Like the 'Scorpion Unit' February 03,. 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." This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. 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. 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. Fox that year was paid $5.9 million. Its a vicious cycle, one that I doubt Spectrum has figured out how to solve. 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. The situation has become so acute that an ICU patient was recently treated in Troys ER. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, AG Dana Nessel and Gov. 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 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. 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. 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. This is Beaumont's latest attempt to merge with another hospital . Far from it. When you sign the documents that will permanently change this region, your signature will forever hold you accountable for the repercussions, Freed said in a letterhe posted on LinkedIn. The silence is understandable. Hiring nurses for Henry Fords flagship Detroit hospital is a more formidable challenge because some candidates fear working in Detroit. Also unavailable for clarifications will be Dawn Geisert, Beaumonts former compliance chief. 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. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. That's bad news for Metro Detroit's biggest hospital . 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. 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. Beaumonts Fox doesnt take pride in the directors he is supposedly accountable to, possibly because he regards them as his subordinates. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. Spectrums financial statements indicate that cash and investments from the acquisition was $3.2 billion. 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. Spectrum and Beaumont are not corporate equals. 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 Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. By Eric Starkman Beaumont Health CEO John Fox has no shame. 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. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. 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. Thats right, CFO Matthew Cox referred to Beaumont as an acquisition, not a merger as Freese Decker and Fox led the media to believe. 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. They are looking at diversity as a numbers game. According to one source, Beaumont at least until recently had more than 3,000 job openings. A company is headquartered where the CEO is based. Its not unusual for a so-called charge or supervisory ICU nurse to have just one year of experience. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who . It isnt clear from Beaumonts stats that the hospitals Covid patients were admitted because of the disease or possibly some other serious ailments. 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. The joint release promotes the benefits of Priority Health, Spectrums insurance plan. Freese Decker should be fired. Reach Eric Starkman at: eric@starkmanapproved.com. Share. Bloomberg on Wednesday posted an editorial warning about the growing merger trend among hospitals, noting that it leads to higher insurance prices. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. My guess is that if Freed understood how Beaumonts directors stood idly by while Beaumont imploded, hed challenge their appointments regardless. 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. Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. 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. Reach Eric Starkman at: eric@starkmanapproved.com. He previously concluded a deal with Akron-based Summa Health but backed out despite already having received regulatory approval. Gretchen Whitmer were silent. By Eric Starkman . That's bad news for Metro Detroit's biggest hospital system. Pamela Ries, senior vice president and head of HR at Spectrum, is listed as chief integration officer. Spectrums due diligence team will be unable to get clarifications on Beaumonts financials from the companys CFO because it doesnt have one. "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. Allowing them to continue profiting from their mismanagement would undermine Spectrum managements credibility from the get-go. The deal, which was announced Thursday, is still subject to various regulatory approvals. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. 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. Nurses employed by staffing agencies are paid more than staff nurses performing the same functions. Beaumont Dearborn also is receiving military assistance to help the hospital manage its Covid patient load. Beaumont derailed the effort after spending nearly $2 million on union busters, furthering ill will among its nurses. An additional director will also be named. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. 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. Under Susicks leadership, Beaumont Royal Oak precipitously declined, and internally she was viewed as a Fox sycophant. Beaumont Troy also operates at a reduced capacity. Despite Freeds damning allegations, Beaumont spokesman Mark Geary ignored a request for comment. 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. The FTC is headed by Lina Khan, a Democrat appointed by Biden and sworn in last June 15 to a three-year term. 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. Even when Fox announces a merger deal with Spectrum, theres still no guarantee it will go through. '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. Beaumont CEO John Fox will forever be remembered in the Detroit area as a con man. Reach Eric Starkman at: eric@starkmanapproved.com. 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. In his video, Fox was wearing a pinstripe suit jacket, not his trademark blue blazer. To support Deadline Detroit's independent. Spectrums board includes Doug DeVos, co-chair of Amway, whose family is among the most powerful in Michigan. Israel relies nearly 100 percent on Pfizer vaccines, while the U.S. also has a prevalence of Moderna and J&J vaccines. Also fostering ill will is Beaumonts mandate requiring that all employees be vaccinated or be fired. 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. Southeastern Michigan residents shouldnt look to Rep. Andy Levin to save the day. Fox has a change of control clause in his contract, meaning he will likely receive a lucrative exit package. 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