Ohios AG has won a series of landmark settlements taking on healthcare companies. 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. 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. 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. This is Beaumont's latest attempt to merge with another hospital . Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. 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. In quickly reviewing Spectrums website and news releases, I can't find evidence that Freese Decker has expressed the belief that Spectrum needed to achieve considerable size to survive and remain competitive. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. 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 Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. 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. 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 also is an eye-opening surprise. By comparison, BHSH will have 22 hospitals and 64,000 employees. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. 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. Those workforce headwinds should have been known to Freese Decker well before she took over Beaumont. Indiana University Health has 16 hospitals and 36,000 employees. 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. 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. His latest story for DeadlineDetroit.com shows that high ranking executives are being let go in advance of the proposed merger with Grand Rapids based Spectrum Health. In a further diss to the community, Beaumont converted a laundry facility into a makeshift morgue without getting permits. 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. Those warnings are what led Congress to approve the financial largesse that Beaumont and other hospitals benefited from. Freese Decker held various strategic and operational roles before being named to the top job in 2018. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. Beaumont at one point claimed to have 38,000 employees, but with layoffs and unfilled positions its not clear how many employees remain. 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 quality of care has declined to such a degree that insiders readily admit they wouldnt entrust their families care to the hospital. 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. Given that a survey of Beaumont doctors revealed last year they had no confidence in Fox, Wilson, and chief medical officer David Wood Jr., recruiting top quality executives to Beaumont is a near impossible challenge with Fox and Wilson at the helm. Thats right, CFO Matthew Cox referred to Beaumont as an acquisition, not a merger as Freese Decker and Fox led the media to believe. Fox that year was paid $5.9 million. I know little about Fream, who served as Beaumonts vice chair for several years. Susan Grant, the chief nursing officer for all of Beaumont, has her primary home in Atlanta. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. By Eric Starkman Beaumont Health CEO John Fox has no shame. 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. 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,. Beaumont was once mostly staffed by highly skilled veterans, among the best in healthcare. 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. Fox has a change of control clause in his contract, meaning he will likely receive a lucrative exit package. Freed has vowed he will hold Spectrums directors accountable for the repercussions to his Grand Rapids community. 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. Beaumont Royal Oak nurses must sometimes tend to as many as seven at a time. 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. Hes even willing to exploit the publics fear of Covid to distract from his own mismanagement. Reach Eric Starkman at: eric@starkmanapproved.com. Have you tried to find Beaumont Healths financial statements? Freed asks. Its not unusual for a so-called charge or supervisory ICU nurse to have just one year of experience. Reach Eric Starkman at: eric@starkmanapproved.com. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. Beaumont, consistent with its practice of putting a spin on undesirable news, notified employees that it is making "good progress" toward . Even when Fox announces a merger deal with Spectrum, theres still no guarantee it will go through. 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.. To support Deadline Detroit's independent. The merger could still fall apart if Spectrum has a top-notch duediligence team. 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. 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. The writer, a Los Angeles freelancer and formerDetroit News business reporter, blogs atStarkman Approved. Beaumont CEO Fox and COO Wilson Must Go Now! For years, former Beaumont CEO John Fox was paid more than $6 million annually because of his supposedly deft fiscal management. Hospital plans are designed to incentivize doctors not to order or recommend expensive procedures in order to reduce payouts. 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. 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. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Whats notable about the joint announcement and Beaumonts internal communications is whats missing. It comes as no surprise that Spectrums takeover received the green light. By Eric Starkman During the Covid pandemic, a hospital's safety practices are more. The deal, which was announced Thursday, is still subject to various regulatory approvals. An additional director will also be named. 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. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. 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. Moreover, rookie nurses still have a lot to learn. 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. 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. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved. The good news is that Beaumont isnt overrun with critically ill Covid patients, which suggests that vaccines are doing what they were intended to do: Prevent people who contract the disease from becoming critically ill and dying. That's bad news for Metro Detroit's biggest hospital system. 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. 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. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. 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. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. So What? Companies often create diversity positions for window dressing purposes. But Beaumonts release last month announcing her elevation to chair to replace John Lewis provides some insight. The nurse anesthetists at Beaumont Royal Oak, Troy and Grosse Pointe hospitals, who are critical to keeping their facilities' lucrative surgery businesses humming, are mad as hell and aren't going to take it anymore. 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. These contracted doctors also were responsible for setting up a Covid-19 ICU unit at Beaumont Troy. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. The terms of the deal were so obscenely favorable to Advocate Aurora that Rep. Andy Levin, whose district includes Beaumont Royal Oak, announced he would oppose the deal. Said a veteran Troy ER source: Ive never seen anything like this in all my years of nursing. Carey has spent more than 20 years as a . Spectrum CEO Tina Freese Decker will lead the combined company. As of this writing, Freeds letter received 40 likes and other shows of support, and not a single criticism. Wright Lassiter III, president and CEO of Henry Ford Health System, is chair of the AHA. And there is no mention of what, if any, role Beaumont COO Carolyn Wilson will play after the merger. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who . To support Deadline Detroit's independent. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. Spectrum also is comfortable issuing misleading or deceptive statements, so culturally Beaumont is possibly a great fit. 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. To the distaste of the pediatric heads colleagues, Susick walked him out of the hospital in front of his staff. Inexperienced nurses
With regards to healthcare, Nessel is a do-nothing attorney general who has stood idly by as Fox drove Beaumont into the ground and is expected to rubber stamp Spectrums takeover. 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. If (Beaumonts) operating margins are adequate, and they have plenty of cash, whats the problem? 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. Jane Jordan, Beaumonts general counsel, is said to have stuck around only to help Fox negotiate a merger deal. Spectrums financial statements indicate that cash and investments from the acquisition was $3.2 billion. That resulted in Beaumont staff nurses working alongside nurses getting paid considerably more money doing the same job, prompting more staff nurses to leave. Funny we only now are learning just how badly Fox ran Beaumont into the ground. She bolted last month. View Comments. 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. 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. Spectrum no doubt knew that Fox was desperate to unload Beaumont, so Freese Decker had him by the cajones. Reach Eric Starkman at: eric@starkmanapproved.com. 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