I only see the potential for massive financial loss., Freed warns Spectrums directors: When you sign the documents that will permanently change this region, your signature will forever hold you accountable for the repercussions.. Moreover, rookie nurses still have a lot to learn. Spectrum spokeswoman Ellen Bristol Wednesday morning said she would look into whether a merger was imminent, seeming to indicate Deadline Detroits inquiry was the first shed heard of a potential deal. 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. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Tina Freese Decker, Spectrum president and CEO, a month membership or a one-time donation, 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, Andy Levin Goes After Amazon's Union Busting in Alabama, but Silent About Beaumont. Fox has a change of control clause in his contract, meaning he will likely receive a lucrative exit package. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Spectrum CEO Tina Freese Decker will lead the combined company. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. I know little about Fream, who served as Beaumonts vice chair for several years. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. The resignations were due to working conditions and management dissatisfaction, not Covid. 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. 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 Detroit News. 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. 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. 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. Its a no-brainer to understand why Fox desperately needs to pull off the Spectrum merger. . What, if any, role Wilson will play after the merger hasnt been disclosed. But Beaumonts release last month announcing her elevation to chair to replace John Lewis provides some insight. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Beaumonts orthopedic surgeons, ranked among the best in the country, are doing their lucrative joint replacement surgeries at area ambulatory centers. Even Beaumont employees suffering from myopia can read this writing . There are no bios or photos of Beaumonts other directors, and thats by intent. He previously concluded a deal with Akron-based Summa Health but backed out despite already having received regulatory approval. Most of Foxs senior management team has departed, and hes expected to leave once the takeover is completed and he receives the millions of dollars likely owed to him under his golden parachute agreement. Fox took his marching orders from John Lewis, a retired Comerica executive who came from Oakwood and was named chairman of the combined organizations. In what will likely be his final FU to Metro Detroit, Fox will depart on Friday. Whats becoming increasingly obvious is how Freese Decker, like John Fox, is prone to making public statements that have no basis in fact. The FTCs approval isnt certain, as President Biden has asked the agency to be more critical of mergers. All of Spectrums top executives are based in Grand Rapids, which is understandable since none of Foxs top lieutenants remained with the company. Share. If (Beaumonts) operating margins are adequate, and they have plenty of cash, whats the problem? Spectrum no doubt knew that Fox was desperate to unload Beaumont, so Freese Decker had him by the cajones. And given the sorry state of Beaumont resulting from Foxs leadership, its an emergency rescue. He tweeted on Thursday that he was cautiously optimistic about certain aspects of the partnership. These contracted doctors also were responsible for setting up a Covid-19 ICU unit at Beaumont Troy. An additional director will also be named. Beaumont institutionally has a very tenuous relationship with truth. Nursing shortages are causing havoc at other Beaumont hospitals as well. 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. Many executives ask me privately, How many Black people do I have to have?. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved. 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. By comparison, BHSH will have 22 hospitals and 64,000 employees. More importantly, I doubt that Spectrums doctors would feel the need to circumvent management in the first place. Craig's guest is Eric Starkman, Deadline Detroit contributor and author of the blog Starkman Approved. 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. Beaumont, consistent with its practice of putting a spin on undesirable news, notified employees that it is making "good progress" toward . 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. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Beaumonts Fox doesnt take pride in the directors he is supposedly accountable to, possibly because he regards them as his subordinates. Lewis previously served on the board of one of Beaumonts predecessor companies and likely didnt want to continue after Beaumont completed its merger. Spectrums takeover of Beaumont was a deal that should never have been allowed. Spectrumreportedthat Beaumonts operations already have racked up nearly $100 million in losses. Grand Rapids business community is small and tight knit, and Spectrum is a major employer in western Michigan. One of the deciding factors in evaluating merging Beaumont and Spectrum will be the financial terms of the deal. 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. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Freed doesnt disclose his hunch about Beaumonts financials, which received less oversight than he possibly knows. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, A Zoom video conference call that was leaked this week, a month membership or a one-time donation, Sh** Show At Beaumont Endoscopy Suite In Chaos Amid Nursing Shortage, C-Section Horror at Beaumont Lawsuit Claims Surgeon Left Sponge in Patients Abdomen, Former Spectrum CFO Trashes Beaumont Merger and Warns of 'Massive Financial Loss', Beaumont Health's Merger Partner Reveals its Disingenuous, Deceptive and Disrespectful Nature, Spectrum Healths Black Employees Explore Class Action Lawsuit Alleging Systemic Racism, Beware! The Michigan Nurses Union vowed it would no longer seek to organize at Beaumont because of the companys climate of fear.. The nursing scholarship wont alleviate Spectrums immediate nurse staffing issues. 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. If the proposed merger goes through, seven Beaumont board members will serve on the board of the combined companies. Reach Eric Starkman at eric@starkmanapproved.com . Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. Beaumont is having difficulty attracting mid- and lower-level employees as well. 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. 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. Whats notable about Foxs disclosure is the seeming priorities of Spectrum compared to Advocate Aurora, the Chicago-based hospital system that Fox tried to give Beaumont away to in June 2020 under terms so obscenely favorable to Advocate Aurora, he couldnt pull it off. Spectrumissued a statement to MiBizabout the disastrous financials reminiscent of the spin Fox served up during his seven-year tenure. Spectrum, with $6.9 billion in revenues, operates 14 hospitals in the western side of the stateand has 30,000 employees. 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. Whats notable about the joint announcement and Beaumonts internal communications is whats missing. 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.. Spectrum has also been embroiled in controversy that made national news. By Eric Starkman Beaumont Health CEO John Fox has no shame. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Reach Eric Starkman at: eric@starkmanapproved.com. ", 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! Beaumont reported operating revenues of $4.6 billion in 2020 and is only an eight-hospital system. 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. Spectrum CEO Tina Freese Decker obviously believes the Beaumont merger is already a done deal. Share. 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. Destroying Beaumont and Spectrum Health, Covid Not Responsible for ER Debacles at Beaumont RO and Troy, Sh** Show at Beaumont Endoscopy Suite in Chaos Amid Nursing Shortage, C-Section Horror at Beaumont Lawsuit Claims Surgeon Left Sponge in Patients Abdomen, Former Spectrum CFO Trashes Beaumont Merger and Warns of 'Massive Financial Loss', Beaumont's Merger Partner Reveals its Disingenuous, Deceptive, Disrespectful Nature, Spectrum Healths Black Employees Explore Class Action Lawsuit Alleging Systemic Racism, Beware! 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. Lina Khan of the Federal Trade Commission, 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. Studies show that when hospitals combine, healthcare prices increase while patient quality declines. Meet Michael Freed, decidedly among the bravest persons in . This is Beaumont's latest attempt to merge with another hospital . Beaumont has signed a letter of intent to merge with Spectrum Health, a Grand Rapids-based hospital network focused on Western Michigan, the company announced internally Wednesday. In a further diss to the community, Beaumont converted a laundry facility into a makeshift morgue without getting permits. Even more disconcerting: Beaumont chairwoman Julie Fream will serve as chairwoman if the companies merge. Freese Decker grabbed the brass ring, but it was badly tarnished. 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. to Michigan Tweet. 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. 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. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Consultants are part of the . Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. No doubt the pot of cash is the bait that got the merger talks going. 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. As best I can tell, Freese Decker is genuinely committed to forging relationships with the communities Spectrum serves, unlike Fox and his managers, many of whom dont even live in the Detroit area. She never followed up with a comment. Reach Eric Starkman at: eric@starkmanapproved.com. In Dearborn, the nursing shortage is so acute that an ICU operates at 60 percent capacity. If there was an annual award for the healthcare industrys biggest chump, I defy anyone to propose a more worthy recipient than Tina Freese Decker, CEO of Grand Rapids-based Spectrum Health. The combined Spectrum and Beaumont operations will temporarily be called BHSH System. 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. 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. Southeastern Michigan residents shouldnt look to Rep. Andy Levin to save the day. No one from southeastern Michigan has emerged promising to hold Julie Fream and other Beaumont directors who supported Fox accountable for the harm theyve caused Metro Detroit residents. Pamela Ries, senior vice president and head of HR at Spectrum, is listed as chief integration officer. 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. Its reasonable to assume the real reason for Freams elevation was the board knew Fox was close to inking a deal with a merger partner. Israel relies nearly 100 percent on Pfizer vaccines, while the U.S. also has a prevalence of Moderna and J&J vaccines. If Michigan had a competent attorney general or a governor with a healthcare interest beyond abortion rights, the deal would have been derailed. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. February 02, 2022, 4:58 PM . Corewell Health has appointed Dr. Daniel Carey as the new president for its Beaumont Hospital campus in Royal Oak. The Chief People Officer position is listed as open, indicating that Ries isnt getting the top HR job at BHSH. He also noted that Beaumont received Medicare advances of $505 million in 2020 that needs to be returned this year. Fox said Beaumont plans to ask for military assistance to support its other facilities. 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. 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. . Reach Eric Starkman at: eric@starkmanapproved.com. 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.. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. 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. 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. 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. 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. Seven Failed Beaumont Directors Will Serve on Board If Spectrum Merger Gets Approval Tweet. Spectrums takeover must be approved by Michigan Attorney General Dana Nessel and the Federal Trade Commission. The list goes on. Inexperienced nurses 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. Hospital plans are designed to incentivize doctors not to order or recommend expensive procedures in order to reduce payouts. Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. A source told me that Barbee was highly regarded among Spectrums Black employees but was frustrated by his inability to achieve meaningful change. Tina Freese Decker, president and CEO of Spectrum, is chair of the Michigan Health & Hospital Association. 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. The once proud and respected hospital system merged with two lesser ones in 2015, paving the way for Fox, who was determined to sell Beaumont from the moment he arrived. Those warnings are what led Congress to approve the financial largesse that Beaumont and other hospitals benefited from. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. 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 Detroit Free Press quotedSpectrum's Freese Decker as saying, Today is a historic day. Its one of the rare instances where shes made a statement of undeniable truth. 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. 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 Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. 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,. Starkman: Beaumont's FU to Metro Detroit and its Covid-19 Workers Tweet. 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. By Eric Starkman During the Covid pandemic, a hospital's safety practices are more. 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,. But unlike Beaumont, Henry Fords staffing issues arent due to mismanagement. Is that still on track given Beaumonts oceans of red ink? The only remaining senior management executives are Grant, the chief nursing officer, and Jane Jordan, the chief lawyer, who like Grant and CEO Fox, has her primary home in Atlanta. The companys chief revenue officer left earlier this month. 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." Today is indeed a historic day. Beaumont CEO John Fox . September 15, 2020, 9:36 PM . 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