'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? The quality of care has declined to such a degree that insiders readily admit they wouldnt entrust their families care to the hospital. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. 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. 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. 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. 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. By Eric Starkman Beaumont Health CEO John Fox has no shame. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. Other state attorney generals have also shown a willingness to take on the powerful interests of U.S. hospital companies. To support Deadline Detroit's independent. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. Fox didnt disclose how much Beaumont will spend to fund its real estate expansion. Beaumont CEO John Fox is headed for the door Friday. Why isnt Freese Decker following through on that supposedly great initiative? She never followed up with a comment. Freese Decker cant say she wasnt warned. 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. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Spectrums four-person communications team also ignored a request for comment. 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. 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 was once mostly staffed by highly skilled veterans, among the best in healthcare. The promised dual headquarters was also BS. 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. Spectrums board is certainly a lot tougher on compensation. Working at Beaumont under Fox and his former COO Carolyn Wilson was a hellacious HR experience, and the pandemic worsened the situation. 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. 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. Allowing them to continue profiting from their mismanagement would undermine Spectrum managements credibility from the get-go. Still, Beaumont is clearly going to be a financial albatross on Spectrums operations for quite some time. 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. In Dearborn, the nursing shortage is so acute that an ICU operates at 60 percent capacity. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. 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. 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. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. Beaumonts leadership page only features a photo and bio of Julie Fream, who on paper at least seems credible: Fream is the president and CEO of the Original Equipment Suppliers Association, an industry nonprofit, and she has a Harvard MBA. Spectrum also reported that Beaumont lost $253 million on its investments. Fox disclosed that Beaumont has extensively expanded its use of nurse staffing agencies, which could exacerbate already poor morale among its nurses. 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.. And there is no mention of what, if any, role Beaumont COO Carolyn Wilson will play after the merger. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. Reach Eric Starkman at: eric@starkmanapproved.com. That amounts to a Spectrum takeover in my book. As one source commented: Why doesnt the board just give Fox $25 million to go away?. Less readily understood is why Spectrum would want to do a deal. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Israel relies nearly 100 percent on Pfizer vaccines, while the U.S. also has a prevalence of Moderna and J&J vaccines. Spectrum was projecting a loss of $57.1 million, which . By comparison, BHSH will have 22 hospitals and 64,000 employees. 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. Share. Fox that year was paid $5.9 million. 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. Freese Decker is likely assured a big pay increase and bonus. In a September letter to Michigan Attorney General Dana Nessel warning about Beaumonts implosion, Shaevsky spoke of the need for independent directors to bring some stability to the organization.. 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. 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 , Spectrum Moves Forward with Beaumont Takeover, Beaumont Expects Imminent FTC Approval For Spectrum Takeover Of Its Faltering Hospital System, Good News From Beaumont Hospital Network To Spend 'Significant Dollars' to Expand Private Room Capacity, Beaumont Foxs Thanks to Hospital Docs: Let Them Eat A Cookie., Beaumont Faces Threat of Nurse Anesthetists Strike Over Declining Patient Safety Standards, Bad News for Beaumont -- CEO John Fox Sticking Around Longer Than Expected, CEO John Foxs Michigan Legacy? According to a source, some travel nurses are being paid lucrative wages to work only three or four shifts a week. 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. John Fox, the Atlanta carpetbagger who washed up on the shores of southeastern Michigan seven years ago to bolster Beaumont Healths profits and gussy up Metro Detroits biggest hospital network so that he could sell it, appears hes pulled off what he set out to do. Share. Beaumont spokesman Mark Geary ignored a request for comment. He didnt address staff as folks as hes repeatedly done in the past and he looked more relaxed and rested than in previous videos. 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. Fox and spinmeister Geary have a history of making statements that are deceptive and misleading, a compilation of which can be found here. 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. Spectrum CEO Tina Freese Decker will lead the combined company. They say waits extending six hours and beyond stem from a chronic shortage of inpatient nurses thats forced the closing of various wards. Confidentiality is assured. They are looking at diversity as a numbers game. Spectrum CEO Tina Freese Decker obviously believes the Beaumont merger is already a done deal. Reach Eric Starkman at: eric@starkmanapproved.com. 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. Under their oversight, Beaumont suffered a precipitous decline in reputation and quality of care. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. After posting his letter, Freed noted on his LinkedIn page that Beaumont made $167 million from its operations in 2020, which included revenue recognition of $349 million from the CARES Act and FEMA payments for Covid. A source told me that Barbee was highly regarded among Spectrums Black employees but was frustrated by his inability to achieve meaningful change. Even more disconcerting: Beaumont chairwoman Julie Fream will serve as chairwoman if the companies merge. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Susan Grant, the chief nursing officer for all of Beaumont, has her primary home in Atlanta. Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. 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. 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. Whats becoming increasingly obvious is how Freese Decker, like John Fox, is prone to making public statements that have no basis in fact. Thats right, CFO Matthew Cox referred to Beaumont as an acquisition, not a merger as Freese Decker and Fox led the media to believe. According to one source, Beaumont at least until recently had more than 3,000 job openings. A lifelong Michigander with an impressive background, Barbee resigned in October to join Indiana University Health as head of HR. 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. Lewis previously served on the board of one of Beaumonts predecessor companies and likely didnt want to continue after Beaumont completed its merger. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Employees blame them both for Beaumonts implosion. John Kerndl and Denise Waters. 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. Freed might want to reach out to Mark Shaevsky, a prominent southeastern Michigan attorney and a former Beaumont board member before it merged with two lesser hospital companies in 2014. Spectrum also experienced considerable turnover of Black employees, some of whom considered filing a class action lawsuit . Nonprofit hospitals are supposed to manage their investments conservatively, opting for boring short-term duration bonds and other low risk investments. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. Beaumont Troy also operates at a reduced capacity. 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. Starkman: Beaumont's FU to Metro Detroit and its Covid-19 Workers Tweet. Giving some of them oversight over a considerably bigger hospital system is reckless and irresponsible. Inexperienced nurses To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Fox trumpeted the deal as a win for Southeastern Michigan because he said Advocate Aurora would invest $1 billion to move the William Beaumont Medical School in Rochester to the Royal Oak campus and upgrade Beaumonts technology. 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. Today is indeed a historic day. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. There is compelling research showing that hospital mergers result in higher patient costs and reduced quality of care. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. 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. 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. . We talk with many of them, Joanne Giardini-Russell, a Brighton Medicare consultant posted on Freeds LinkedIn page. 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. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. April 18, 2020, 3:27 PM . Despite these challenges, our team members continued to provide nationally recognized health care and we were able to make new investments in the market and bring on new talent, Spectrum said. Freese Decker this week toured Beaumont Troy Hospital, and notably neither Fox nor COO Carolyn Wilson were in tow. Reach the writer ateric@starkmanapproved.com. Beaumont reported operating revenues of $4.6 billion in 2020 and is only an eight-hospital system. The rankings are based on data compiled before Beaumont Royal Oak outsourced its anesthesia services, a controversial move linked to the death of a patient undergoing a routine colonoscopy and another patient landing in the ICU because of a pain medication overdose. 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. 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. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. 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. Also fostering ill will is Beaumonts mandate requiring that all employees be vaccinated or be fired. Beaumont Royal Oak nurses must sometimes tend to as many as seven at a time. June 17, 2021, 9:36 PM . Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. If the proposed merger goes through, seven Beaumont board members will serve on the board of the combined companies. 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. 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. Spectrum appears to have grown organically, focused on a region it knows well. In what will likely be his final FU to Metro Detroit, Fox will depart on Friday. As often happens when you meld two organizations, the weaker one brings the stronger one down. By Eric Starkman. 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. If (Beaumonts) operating margins are adequate, and they have plenty of cash, whats the problem? 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. The metric that matters most is quality of patient care. 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. 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. 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 deal, which was announced Thursday, is still subject to various regulatory approvals. Funny we only now are learning just how badly Fox ran Beaumont into the ground. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved. Companies often create diversity positions for window dressing purposes. Far from it. 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. Beaumonts board failed in their duties overseeing the hospital system they were responsible for protecting. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. Prioritys goal is to capture as much market share as possible and then use that power to reduce what it pays to doctors to cover their services. Ohios AG has won a series of landmark settlements taking on healthcare companies. Beaumont CEO Fox and COO Wilson Must Go Now! 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. Hiring nurses for Henry Fords flagship Detroit hospital is a more formidable challenge because some candidates fear working in Detroit. She bolted last month. Freed is seemingly unaware of how desperate Beaumont CEO John Fox is to find a merger partner and complete the sale before year-end. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. Michigan Gov. By Eric Starkman. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. 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. It comes as no surprise that Spectrums takeover received the green light. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. He said the expansion would involve a lot of local planning in terms of where these bed towers are located, which seemingly indicates that Beaumont is planning to expand its real estate footprint. Spectrum reported that Beaumont's operations already have racked up nearly $100 million in losses. Reach Eric Starkman at eric@starkmanapproved.com . 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. So What? Beaumont Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Beaumont is a crippled hospital network on management life support. Spectrum also is comfortable issuing misleading or deceptive statements, so culturally Beaumont is possibly a great fit. The writer, a Los Angeles freelancer and formerDetroit News business reporter, blogs atStarkman Approved. Gretchen Whitmer were silent. 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. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, AG Dana Nessel and Gov. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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 would mean there wouldnt be one senior executive from Beaumont involved in the management of the combined hospital systems. Nursing shortages are causing havoc at other Beaumont hospitals as well. Spectrum and Beaumont announced today that they are moving forward with Spectrums takeover, having provided the applicable regulatory agencies with all requested information. The deadline apparently has passed for the Federal Trade Commission to challenge the deal. 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. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. He's even willing to. Starkman: Beaumont CFO John Kerndl and Top CEO Aide Say No! Reach Eric Starkman at: eric@starkmanapproved.com. Freese Decker held various strategic and operational roles before being named to the top job in 2018. The expansion is apromising sign that Spectrum is willing to commit money and resources to expand and upgrade Beaumonts facilities and reverse the decline the hospital system has suffered from Foxs extensive cost-cutting during his seven-year reign. His chief marketing officer resigned last September, his CFO quit in March, his chief compliance officer left a few weeks ago, and his chief revenue officer is out the door in a few days. I know little about Fream, who served as Beaumonts vice chair for several years. To the distaste of the pediatric heads colleagues, Susick walked him out of the hospital in front of his staff. Those warnings are what led Congress to approve the financial largesse that Beaumont and other hospitals benefited from. To support Deadline Detroit's independent. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. Spectrums due diligence team will be unable to get clarifications on Beaumonts financials from the companys CFO because it doesnt have one. Ohios AG has won a series, Today is indeed a historic day. The silence is understandable. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. Thats how Beaumont ended up in the sorry state that it did. Beaumont Health CEO John Fox, the Atlanta carpetbagger who destroyed the companys flagship Royal Oak hospital while pocketing more than $20 million for himself, appears close to pulling off what he set out to do from the moment he arrived in Metro Detroit six years ago: Merging southeastern Michigans biggest hospital network out of existence. 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.. By Eric Starkman During the Covid pandemic, a hospital's safety practices are more. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. 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. 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