When Fox arrived, Beaumont Royal Oak was among the best regional hospitals in the country; today it can best be described as a giant but mediocre community hospital. The only aspect of the deal worth cheering about is that Fox will finally be removed from Beaumont, but the company shouldnt have to lose its independence to make that happen. Why isnt Freese Decker following through on that supposedly great initiative? 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. 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. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. In his video, Fox disclosed that none of the monies for the planned expansion are being diverted from funds to deal with Beaumonts chronic staff shortages that have forced the closing of wards because there isnt sufficient medical staff to cover them. Spectrum and Beaumont are not corporate equals. 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.. Even Beaumont employees suffering from myopia can read this writing . 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. Reach the writer [email protected]. The deal, which was announced Thursday, is still subject to various regulatory approvals. Its a no-brainer to understand why Fox desperately needs to pull off the Spectrum merger. Spectrum also reported that Beaumont lost $253 million on its investments. 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. To the distaste of the pediatric heads colleagues, Susick walked him out of the hospital in front of his staff. Under Susicks leadership, Beaumont Royal Oak precipitously declined, and internally she was viewed as a Fox sycophant. Freed has vowed he will hold Spectrums directors accountable for the repercussions to his Grand Rapids community. Nursing shortages are causing havoc at other Beaumont hospitals as well. 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. Consultants are part of the . On Thursday he posted an open letteron his LinkedIn page to Spectrums board implicitly questioning Beaumont Health's financials and warning that merging with the Southfield-based hospital network is ill advised. Freese Decker cant say she wasnt warned. 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. More importantly, I doubt that Spectrums doctors would feel the need to circumvent management in the first place. The deal will invariably be good for Fox, as he will likely get a very lucrative exit package to sail into the Georgia sunset. 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. It is said that you can judge a person by the company they keep. 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. Beaumont was once mostly staffed by highly skilled veterans, among the best in healthcare. Spectrum is a competently run company on an upward trajectory, while Beaumont is a very damaged goods operation. Fortunately, Freese Deckers western Michigan businesses were healthy enough to allow Spectrum to eke out an operating profit of $119.7 million despite Beaumonts losses. 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. 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. ", 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! 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. Ohios AG has won a series, Today is indeed a historic day. Beaumont Dearborn also is receiving military assistance to help the hospital manage its Covid patient load. . 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. 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. Share. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Michigan Gov. The Chief People Officer position is listed as open, indicating that Ries isnt getting the top HR job at BHSH. A trade publication quoted Freese Decker today as saying theres widespread enthusiasm in western and southeastern Michigan for the merger. Lewis, the board chair, was replaced earlier this month by Julie Frehm, president and CEO of the Original Equipment Suppliers Association. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, 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. 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. 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. 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. Getting more Americans vaccinated is widely believed the ticket to saving lives and preventing hospitals from being overrun with Covid patients at deaths door. He's even willing to. Maybe they dont teach this at the University of Iowa from where Freese Decker received her Master of Health Administration, but when a hospital spends nearly $2 million as John Fox did to intimidate nurses at his flagship Royal Oak hospital and derailed a unionizing attempt, it creates bad blood. Share. 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. Even if the executive couldnt restore Beaumont to its former glory, he or she could at least have minimized the damage and fetched a higher price for the hospital network than whatever Fox has negotiated. Spectrums board is certainly a lot tougher on compensation. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. Confidentiality is assured. Biden last July issued an executive order instructing the FTC to be more critical of hospital mergers because studies show they invariably result in higher patient costs and poorer quality of care. But Beaumonts release last month announcing her elevation to chair to replace John Lewis provides some insight. 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 employees and vendors are encouraged to reach out, with confidentiality assured. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Fox also disclosed that Beaumont has earmarked $40 million to purchase state-of-the-art beds, some of which are already being delivered. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. How Absurd. June 17, 2021, 9:36 PM . 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. Wright Lassiter III, president and CEO of Henry Ford Health System, is chair of the AHA. Under their oversight, Beaumont suffered a precipitous decline in reputation and quality of care. Soon after, Fox announced the Advocate Aurora deal. Pamela Ries, senior vice president and head of HR at Spectrum, is listed as chief integration officer. By Eric Starkman. 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. Starkman: Beaumont CFO John Kerndl and Top CEO Aide Say No! Spectrum also experienced considerable turnover of Black employees, some of whom considered filing a class action lawsuit . I imagine Fox is luxuriating at one of his Atlanta or North Carolina manors laughing hysterically at the Michigan executive yahoo who took Beaumont off his hands and no doubt paid him millions as part of the deal. In June of last year Fox announced he planned to merge Beaumont into Advocate Aurora, a Chicago-based hospital network whose CEO was on record as having insatiableambitious plans. Fox, who has already been paid more than $20 million in compensation since joining Beaumont in 2016, potentially stands to earn tens of millions more if regulators approve Spectrums takeover. Ohios AG has won a series of landmark settlements taking on healthcare companies. Today is indeed a historic day. Still, Beaumont is clearly going to be a financial albatross on Spectrums operations for quite some time. Support our reporting and commentary by becoming a Deadline Detroit member for as little as $3 per month. The Detroit News. Beaumont Royal Oak nurses must sometimes tend to as many as seven at a time. A source told me that Barbee was highly regarded among Spectrums Black employees but was frustrated by his inability to achieve meaningful change. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. The metric that matters most is quality of patient care. Starkman: Why Beaumont's John Fox Could Haul More Than $30 Million Back to Atlanta Tweet. Spectrum, with $6.9 billion in revenues, operates 14 hospitals in the western side of the stateand has 30,000 employees. 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. Southeastern Michigan residents shouldnt look to Rep. Andy Levin to save the day. The situation has become so acute that an ICU patient was recently treated in Troys ER. Henry Ford in Detroit in years past enjoyed an A safety rating. Spectrum was projecting a loss of $57.1 million, which also is an eye-opening surprise. A credible and competent board would have fired Fox, Wilson, and chief medical officer David Wood Jr. after internal surveys last year revealed the majority of Beaumont doctors and nurses had no confidence in them. Beaumont Troy is a Level II and must also be prepared to handle a wide range of emergencies. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Thats how Beaumont ended up in the sorry state that it did. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. A lifelong Michigander with an impressive background, Barbee resigned in October to join Indiana University Health as head of HR. Beaumont at one point claimed to have 38,000 employees, but with layoffs and unfilled positions its not clear how many employees remain. Beaumont, consistent with its practice of putting a spin on undesirable news, notified employees that it is making "good progress" toward . Whats becoming increasingly obvious is how Freese Decker, like John Fox, is prone to making public statements that have no basis in fact. 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. Ive been looking for the past week and have not located them. The FTC has a backlog of merger applications, and it could take months before it decides on the Spectrum/Beaumont deal. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. By Eric Starkman Beaumont Health CEO John Fox has no shame. Beaumont spokesman Mark Geary ignored a request for comment, which he typically does. But ER nurses are angry with Melissa Foreman Lovell, Troys chief nursing officer, who they say rarely appears at the hospital. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. Tina Freese Decker, president and CEO of Spectrum, is chair of the Michigan Health & Hospital Association. 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. 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,. Typically, when deals of these sorts are announced, the CEO of the acquired company pays lip service to being committed to ensuring a smooth transition and promises to stick around and lend their full support. 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. 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. 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.. Reach Eric Starkman at: [email protected]. Spectrum reported that Beaumont's operations already have racked up nearly $100 million in losses. According to one source, Beaumont at least until recently had more than 3,000 job openings. 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. Beaumont spent nearly $2 million on union busters when nurses at the Royal Oak hospital attempted to organize in 2019. Spectrum has also been embroiled in controversy that made national news. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. In a further diss to the community, Beaumont converted a laundry facility into a makeshift morgue without getting permits. 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. Spectrum no doubt knew that Fox was desperate to unload Beaumont, so Freese Decker had him by the cajones. 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. 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. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. Gretchen Whitmer were silent. 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. 38,000 employees, but the issues predated Covid nurses must sometimes tend to as many as seven at time. No shame wright Lassiter III, president and head of HR series, Today is indeed a day... 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