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. 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. The list goes on. Spectrums previous head of diversity was Ovell Barbee, an African American, who Spectrum proudly announced last April was named one of the leading diversity executives in the country. Reach Eric Starkman at: eric@starkmanapproved.com. The situation has become so acute that an ICU patient was recently treated in Troys ER. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. That Fream will serve as chair of the board overseeing a combined Spectrum and Beaumont is a disgrace and underscores Michigans poor leadership. The Michigan Nurses Union vowed it would no longer seek to organize at Beaumont because of the companys climate of fear.. The Freep quoted Oakland University dean of nursing Judy Didion as saying it will take about a year to build the infrastructure until the school can begin to admit additional students. 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. Fox that year was paid $5.9 million. However, Beaumont Royal Oak is one of the busiest surgical centers in the country. The FTC is headed by Lina Khan, a Democrat appointed by Biden and sworn in last June 15 to a three-year term. Spectrums four-person communications team also ignored a request for comment. 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. 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. That's bad news for Metro Detroit's biggest hospital system. 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. 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 should give Grand Rapids residents cold shivers that the chair of Spectrum is Julie Fream, who was vice chair of Beaumont when Fox destroyed the hospital system's once nationally vaunted reputation. Beaumont Royal Oak in the past 18 months has lost more than a dozen prominent surgeons, half of its fellowship trained anesthesiologists, more than 50 nurse anesthetists, and dozens of nurses. The Detroit News. Beaumont Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Corewell Health has appointed Dr. Daniel Carey as the new president for its Beaumont Hospital campus in Royal Oak. 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. 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. 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. Also, if you wish to support Deadline Detroit's. Gretchen Whitmer has paid lip service that shes committed to so-called healthcare equity, meaning that Blacks receive access to the same quality of care as whites. Fox also disclosed that Beaumont has earmarked $40 million to purchase state-of-the-art beds, some of which are already being delivered. Spectrums prices are higher than Beaumonts, as the hospital network has significantly less competition in western Michigan. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Spectrums takeover must be approved by Michigan Attorney General Dana Nessel and the Federal Trade Commission. 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. The nursing scholarship wont alleviate Spectrums immediate nurse staffing issues. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. 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. This is Beaumont's latest attempt to merge with another hospital . And there is no mention of what, if any, role Beaumont COO Carolyn Wilson will play after the merger. Starkman: Why Beaumont's John Fox Could Haul More Than $30 Million Back to Atlanta Tweet. 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? Understandably, Spectrum is a more profitable hospital system, but its profits also are bolstered by its lucrative Priority Health insurance arm. 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 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.. Fox, who owns homes in Atlanta and North Carolina, cant be bothered to even create the appearance that he cares about Beaumonts future. Fox and spinmeister Geary have a history of making statements that are deceptive and misleading, a compilation of which can be found here. 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. 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. Spectrumreportedthat Beaumonts operations already have racked up nearly $100 million in losses. Freed is seemingly unaware of how desperate Beaumont CEO John Fox is to find a merger partner and complete the sale before year-end. 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. 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.. Freed has vowed he will hold Spectrums directors accountable for the repercussions to his Grand Rapids community. Beaumonts Fox doesnt take pride in the directors he is supposedly accountable to, possibly because he regards them as his subordinates. Thats how Beaumont ended up in the sorry state that it did. 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. (Deadline Detroit art work ), 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. 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. Meet Michael Freed, decidedly among the bravest persons in . According to a source, some travel nurses are being paid lucrative wages to work only three or four shifts a week. By Eric Starkman. But Spectrums management is 100 percent running the show. 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. By Eric Starkman During the Covid pandemic, a hospital's safety practices are more. 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. Beaumont Royal Oak nurses must sometimes tend to as many as seven at a time. 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. Fox took his marching orders from John Lewis, a retired Comerica executive who came from Oakwood and was named chairman of the combined organizations. 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. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, AG Dana Nessel and Gov. The anesthesiologists did this while earning a fraction of their . 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. 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,. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. To be sure, Beaumont isnt alone in suffering from a nursing shortage. 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. 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. Spectrum CEO Tina Freese Decker obviously believes the Beaumont merger is already a done deal. Starkman: Prominent Beaumont Cardiologist Calls for Ouster of Corporate Leaders, The Beaumont Health Superheroes Who Spoke Truth to Power, The Discredited PR Spin of Beaumont Health CEO John Fox, Beaumont and Advocate Aurora End Merger Discussions, Prominent Beaumont Donor Calls for Firing of CEO John Fox and His Key Executives, Starkman: Why Tree Huggers Must Save This Small Town in Michigan From Ford, 'Detroit In Black And White:' Why We Got Kicked Off 910 AM, Randy Wimbley Leaving Fox 2 After a Decade on the Air. The merger talking points for Beaumonts leaders includes a commitment to improve health equity. This from a healthcare company that at the height of the Michigan pandemic last yeartemporarilyclosed Beaumont Wayne, a hospital catering to economically disadvantaged individuals with little or no insurance. Spectrum is a competently run company on an upward trajectory, while Beaumont is a very damaged goods operation. Spectrums board includes Doug DeVos, co-chair of Amway, whose family is among the most powerful in Michigan. Spectrumissued a statement to MiBizabout the disastrous financials reminiscent of the spin Fox served up during his seven-year tenure. The reason Royal Oaks ER, Beaumonts flagship hospital, is often operating at 60 percent capacity because it doesnt have sufficient staff. Beaumont Health was significantly impacted by these financial and workforce headwinds that were particularly strong in Southeast Michigan (in the second quarter). 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. Support our reporting and commentary by becoming a Deadline Detroit member for as little as $3 per month. Fox isnt the only hospital executive looking to exploit the perception that the unvaccinated are responsible for wreaking havoc. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. 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. Nursing shortages are causing havoc at other Beaumont hospitals as well. Spectrum has also been embroiled in controversy that made national news. 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. 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. By comparison, BHSH will have 22 hospitals and 64,000 employees. Spectrums takeover of Beaumont was a deal that should never have been allowed. 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. If (Beaumonts) operating margins are adequate, and they have plenty of cash, whats the problem? Michigan Gov. Spectrum was targeting a $156 million operating profit. It isnt clear from Beaumonts stats that the hospitals Covid patients were admitted because of the disease or possibly some other serious ailments. Under their oversight, Beaumont suffered a precipitous decline in reputation and quality of care. Beaumont is a crippled hospital network on management life support. Spectrum appears to have grown organically, focused on a region it knows well. 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.. 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. According to the most recently available filings, Freese Decker earned $3.9 million in 2018. Yet neither Whitmer or Nessel demanded any diversity or health equity commitments from Spectrum as a condition of its takeover. Merging with Beaumont would more than double Spectrums size in some areas. They say waits extending six hours and beyond stem from a chronic shortage of inpatient nurses thats forced the closing of various wards. In Dearborn, the nursing shortage is so acute that an ICU operates at 60 percent capacity. Craig's guest is Eric Starkman, Deadline Detroit contributor and author of the blog Starkman Approved. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. If the proposed merger goes through, seven Beaumont board members will serve on the board of the combined companies. Another open position is the Chief Inclusion, Equity, Diversity and Social Impact Officer.. Those workforce headwinds should have been known to Freese Decker well before she took over Beaumont. To support Deadline Detroit's independent. Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. View Comments. The joint release promotes the benefits of Priority Health, Spectrums insurance plan. The FTCs approval isnt certain, as President Biden has asked the agency to be more critical of mergers. 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. Share. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Confidentiality is assured. Spectrum also is comfortable issuing misleading or deceptive statements, so culturally Beaumont is possibly a great fit. Its not clear whether Freed knows that Beaumont CEO John Fox was among U.S. hospital executives who shouted the loudest about a looming financial crisis for the health care industry because of the pandemic. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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 employees and vendors are encouraged to reach out, with confidentiality assured. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. Instead, thanks to aggressive cost cutting and other misguided decisions by Fox and COO Carolyn Wilson, Beaumont imploded. 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. Fox in January also disclosed that Beaumont planned to spend significant dollars to embark on a three to five-year plan to expand the health systems private bed capacity. Reach the writer ateric@starkmanapproved.com. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. Still, Beaumont is clearly going to be a financial albatross on Spectrums operations for quite some time. 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.. But unlike Beaumont, Henry Fords staffing issues arent due to mismanagement. Beaumont at one point claimed to have 38,000 employees, but with layoffs and unfilled positions its not clear how many employees remain. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Beaumont CEO John Fox . Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. 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. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Gretchen Whitmer. The silence is understandable. Even when Fox announces a merger deal with Spectrum, theres still no guarantee it will go through. 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. 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. 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 lifelong Michigander with an impressive background, Barbee resigned in October to join Indiana University Health as head of HR. Beaumont CEO John Fox will forever be remembered in the Detroit area as a con man. Than 100 hospital systems hoping to find a merger partner and complete sale. 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