A merger of Spectrum and Beaumont must be approved by Michigan Attorney General Dana Nessel, who has shown no interest in championing healthcare issues and can be counted on to rubber stamp the deal. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. 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. 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. 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. 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. Also fostering ill will is Beaumonts mandate requiring that all employees be vaccinated or be fired. 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. 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. 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. Fox didnt disclose how much Beaumont will spend to fund its real estate expansion. There is compelling research showing that hospital mergers result in higher patient costs and reduced quality of care. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. By Eric Starkman . Beaumont CEO Fox and COO Wilson Must Go Now! 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. There are some serious issues with NorthStar Anesthesia, the Texas-based outsourcing company that Wilson bet the farm on and losing badly so far. 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. 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,. . 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Fox took his marching orders from John Lewis, a retired Comerica executive who came from Oakwood and was named chairman of the combined organizations. 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. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who . I know little about Fream, who served as Beaumonts vice chair for several years. That's bad news for Metro Detroit's biggest hospital system. 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.. 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? Spectrum was projecting a loss of $57.1 million, which . 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. 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. Freed is seemingly unaware of how desperate Beaumont CEO John Fox is to find a merger partner and complete the sale before year-end. What, if any, role Wilson will play after the merger hasnt been disclosed. 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. 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. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. April 18, 2020, 3:27 PM . Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. Beaumont CEO John Fox . 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. 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. However, Beaumont Royal Oak is one of the busiest surgical centers in the country. 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. The joint release promotes the benefits of Priority Health, Spectrums insurance plan. The scuttlebutt around town is that Beaumont directors believe that a merger is the only way to get rid of Fox. Lewis resigned as chair just prior to Fox announcing Spectrums takeover and left the board in December. Spectrums four-person communications team also ignored a request for comment. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. Carey has spent more than 20 years as a . September 15, 2020, 9:36 PM . The writer, a Los Angeles freelancer and formerDetroit News business reporter, blogs atStarkman Approved. In Dearborn, the nursing shortage is so acute that an ICU operates at 60 percent capacity. View Comments. Tina Freese Decker, president and CEO of Spectrum, is chair of the Michigan Health & Hospital Association. The merger could still fall apart if Spectrum has a top-notch duediligence team. Fox and Geary have referred to the Spectrum transaction as a merger and a partnership. Fox has disclosed that he will depart once the deal is completed, and Id be surprised if Grant and Jordan plan to stick around. Hes even willing to exploit the publics fear of Covid to distract from his own mismanagement. The American Hospital Association (AHA), the trade group focused on promoting the financial interests of nonprofit hospitals and their managements, is a major lobbying force in Washington. 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. 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. 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. Spectrums board strikes me as pretty buttoned up, so they might not yet appreciate the extent of how damaged Beaumont really is. 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. 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. Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Also, if you wish to support Deadline Detroit's. 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. 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. Reach Eric Starkman at eric@starkmanapproved.com . In a major blow to the hospital, Reza Dabir, Dearborns top cardiothoracic surgeon, resigned to join Ascension Health. By Eric Starkman Beaumont Health CEO John Fox has no shame. Ive been looking for the past week and have not located them. "Our staff must care for those unvaccinated individuals who become extremely ill with the Covid Delta variant, or other variants, and try to balance all the other patients coming in with medical emergencies. Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. 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 nursing scholarship wont alleviate Spectrums immediate nurse staffing issues. In his video, Fox was wearing a pinstripe suit jacket, not his trademark blue blazer. Seven Failed Beaumont Directors Will Serve on Board If Spectrum Merger Gets Approval Tweet. 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. The evidence is overwhelming that when hospitals merge, prices go up. Freed notes that Beaumont claims to have 300 days of cash on hand but doesnt have a top-tier bond rating allowing it to borrow money at the best rates. Its totally bizarre.. Spectrum appears to have grown organically, focused on a region it knows well. Many executives ask me privately, How many Black people do I have to have?. Starkman: Prominent Beaumont Cardiologist Calls for Ouster of Corporate Leaders, The Clueless Generosity of Beaumont CEO John Fox, Beaumont's Bonuses and the Sorry State of Michigan's Political Leadership, The Controversial Company Beaumont CEO John Fox Keeps, Beaumont Chief John Fox to Detroit-Area Children -- FU Too, The Beaumont Health Superheroes Who Spoke Truth to Power, The Discredited PR Spin of Beaumont Health CEO John Fox, Beaumont and Advocate Aurora End Merger Discussions, Prominent Beaumont Donor Calls for Firing of CEO John Fox and His Key Executives, Starkman: Why Tree Huggers Must Save This Small Town in Michigan From Ford, 'Detroit In Black And White:' Why We Got Kicked Off 910 AM, Randy Wimbley Leaving Fox 2 After a Decade on the Air. 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. 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. Confidentiality is assured. We talk with many of them, Joanne Giardini-Russell, a Brighton Medicare consultant posted on Freeds LinkedIn page. Fox that year was paid $5.9 million. Fox also disclosed that Beaumont has earmarked $40 million to purchase state-of-the-art beds, some of which are already being delivered. 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. 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. By that measure Fox, Wilson, and Wood have poor performance scorecards. Still, Beaumont is clearly going to be a financial albatross on Spectrums operations for quite some time. Nurses employed by staffing agencies are paid more than staff nurses performing the same functions. 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. As a result, patients requiring hospital admission must remain in the ER, diverting beds and staff normally dedicated to treating emergencies. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. To support Deadline Detroit's independent. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. According to one source, Beaumont at least until recently had more than 3,000 job openings. Reach Eric Starkman at: eric@starkmanapproved.com. I dont see any value in this merger, Freed says of the marriage deal Spectrum and Beaumont jointly announced last week. Those warnings are what led Congress to approve the financial largesse that Beaumont and other hospitals benefited from. Beaumont does not have a good reputation regarding how they treat employees. Beaumont is awaiting approval to be rescued by Spectrum Health in Grand Rapids. Lewis previously served on the board of one of Beaumonts predecessor companies and likely didnt want to continue after Beaumont completed its merger. 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. Play after the merger could still fall apart if Spectrum merger Gets Approval Tweet and! 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