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. In Dearborn, the nursing shortage is so acute that an ICU operates at 60 percent capacity. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. For years, former Beaumont CEO John Fox was paid more than $6 million annually because of his supposedly deft fiscal management. Grand Rapids business community is small and tight knit, and Spectrum is a major employer in western Michigan. 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. 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.. There are some serious issues with NorthStar Anesthesia, the Texas-based outsourcing company that Wilson bet the farm on and losing badly so far. 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. 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. Have you tried to find Beaumont Healths financial statements? Freed asks. John Kerndl and Denise Waters. 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,. No doubt the pot of cash is the bait that got the merger talks going. Reach Eric Starkman at: eric@starkmanapproved.com. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Instead, thanks to aggressive cost cutting and other misguided decisions by Fox and COO Carolyn Wilson, Beaumont imploded. 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. 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. The combined Spectrum and Beaumont operations will temporarily be called BHSH System. Fox and spinmeister Geary have a history of making statements that are deceptive and misleading, a compilation of which can be found here. 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. Another open position is the Chief Inclusion, Equity, Diversity and Social Impact Officer.. Carey has spent more than 20 years as a . Beaumont institutionally has a very tenuous relationship with truth. Spectrums takeover must be approved by Michigan Attorney General Dana Nessel and the Federal Trade Commission. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. 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. If Michigan had a competent attorney general or a governor with a healthcare interest beyond abortion rights, the deal would have been derailed. Eight will come from Spectrum, including Freese. Freed doesnt disclose his hunch about Beaumonts financials, which received less oversight than he possibly knows. 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. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. 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. 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? Reach the writer ateric@starkmanapproved.com. Those warnings are what led Congress to approve the financial largesse that Beaumont and other hospitals benefited from. 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. By Eric Starkman. Beaumont CEO John Fox is headed for the door Friday. 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. 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.. Beaumont Royal Oak nurses must sometimes tend to as many as seven at a time. Although we are facing these current financial headwinds, we are confident we will continue to deliver effectively and successfully on our mission in the communities we serve in Michigan.. The merger rationale was that hospitals benefitted from getting bigger and achieving economies of scale. 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. All of Spectrums top executives are based in Grand Rapids, which is understandable since none of Foxs top lieutenants remained with the company. It is said that you can judge a person by the company they keep. She bolted last month. 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 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 Eric Starkman at: eric@starkmanapproved.com. 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. Indiana University Health has 16 hospitals and 36,000 employees. 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. Though a far cry from what Beaumont Health was before CEO John Fox and COO Carolyn Wilson arrived, Spectrum is a quality healthcare company overseen by a responsible board comprised of directors who are pillars of western Michigans business communities. Turns out Beaumonts reported $4 billion reserve also dwindled by the time Fox turned over the keys to Freese Decker. But Spectrums management is 100 percent running the show. 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. The resignations were due to working conditions and management dissatisfaction, not Covid. 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. 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. Soon after, Fox announced the Advocate Aurora deal. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Also, if you wish to support Deadline Detroit's. Reach Eric Starkman at: eric@starkmanapproved.com. Hes even willing to exploit the publics fear of Covid to distract from his own mismanagement. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. Lewis previously served on the board of one of Beaumonts predecessor companies and likely didnt want to continue after Beaumont completed its merger. Rather than having people speculate he was passed over, he chose to step down in advance. Getting more Americans vaccinated is widely believed the ticket to saving lives and preventing hospitals from being overrun with Covid patients at deaths door. Disgruntled Staff. The FTCs approval isnt certain, as President Biden has asked the agency to be more critical of mergers. Spectrum also is comfortable issuing misleading or deceptive statements, so culturally Beaumont is possibly a great fit. Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. It isnt clear from Beaumonts stats that the hospitals Covid patients were admitted because of the disease or possibly some other serious ailments. 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. Nurses employed by staffing agencies are paid more than staff nurses performing the same functions. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Reach Eric Starkman at: eric@starkmanapproved.com. BHSH is what Spectrum calls its combined Beaumont and Spectrum operations. Beaumont, consistent with its practice of putting a spin on undesirable news, notified employees that it is making "good progress" toward . Freese Decker should be fired. He's even willing to. 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. 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. 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 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. Beaumont CEO Fox and COO Wilson Must Go Now! Seven Failed Beaumont Directors Will Serve on Board If Spectrum Merger Gets Approval Tweet. 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. Inexperienced nurses My guess is that if Freed understood how Beaumonts directors stood idly by while Beaumont imploded, hed challenge their appointments regardless. Under their oversight, Beaumont suffered a precipitous decline in reputation and quality of care. 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. When you sign the documents that will permanently change this region, your signature will forever hold you accountable for the repercussions, Freed said in a letterhe posted on LinkedIn. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. Beaumont reported operating revenues of $4.6 billion in 2020 and is only an eight-hospital system. Reach Eric Starkman at: eric@starkmanapproved.com. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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? Fox said Beaumont plans to ask for military assistance to support its other facilities. 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. And there is no mention of what, if any, role Beaumont COO Carolyn Wilson will play after the merger. 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. As of this writing, Freeds letter received 40 likes and other shows of support, and not a single criticism. Henry Ford Hospital announced this week that it was closing 120 inpatient beds systemwide due to staffing shortages. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. 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. Its a vicious cycle, one that I doubt Spectrum has figured out how to solve. Beaumont CEO Fox and COO Wilson Must Go Now! 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. The situation has become so acute that an ICU patient was recently treated in Troys ER. 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. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. 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. 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 list goes on. 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. Nursing shortages are causing havoc at other Beaumont hospitals as well. 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. 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. The Detroit News. Employees blame them both for Beaumonts implosion. The deal, which was announced Thursday, is still subject to various regulatory approvals. However, Beaumont Royal Oak is one of the busiest surgical centers in the country. That would mean there wouldnt be one senior executive from Beaumont involved in the management of the combined hospital systems. Fox also disclosed that Beaumont has earmarked $40 million to purchase state-of-the-art beds, some of which are already being delivered. 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. I can suspect what the problem is but, without transparency, I cant know.. Fox that year was paid $5.9 million. In his video, Fox was wearing a pinstripe suit jacket, not his trademark blue blazer. 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. We are incredibly excited about the impact the BHSH Beaumont Health Nurse Scholar program will have in health care and for our communities.. The reason Royal Oaks ER, Beaumonts flagship hospital, is often operating at 60 percent capacity because it doesnt have sufficient staff. Ohios AG has won a series, Today is indeed a historic day. June 17, 2021, 9:36 PM . Giving some of them oversight over a considerably bigger hospital system is reckless and irresponsible. In its announcement to employees, Beaumont said the merged company will maintain dual headquarters in Southfield and Grand Rapids, an economically inefficient move if true but it likely isnt. The insurance business is among the most profitable sectors in healthcare, but as anyone who has dealt with one of these companies know, their priority is profits, not patient care. The promised dual headquarters was also BS. More importantly, I doubt that Spectrums doctors would feel the need to circumvent management in the first place. 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 Chief People Officer position is listed as open, indicating that Ries isnt getting the top HR job at BHSH. Spectrums CEO Freese Decker joined Spectrum in 2002 as an administrative fellow, a program designed to train masters level graduates the administrative aspects of a healthcare facility. Beaumont was once mostly staffed by highly skilled veterans, among the best in healthcare. But unlike Beaumont, Henry Fords staffing issues arent due to mismanagement. Beaumont does not have a good reputation regarding how they treat employees. 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. Gretchen Whitmer. Theres no prestige working at Beaumont anymore. To the distaste of the pediatric heads colleagues, Susick walked him out of the hospital in front of his staff. In a further diss to the community, Beaumont converted a laundry facility into a makeshift morgue without getting permits. 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. Beaumonts orthopedic surgeons, ranked among the best in the country, are doing their lucrative joint replacement surgeries at area ambulatory centers. The companys chief revenue officer left earlier this month. By Eric Starkman Beaumont Health CEO John Fox has no shame. 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. BHSH will be the biggest hospital network in Michigan and the states biggest employer. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. There is compelling research showing that hospital mergers result in higher patient costs and reduced quality of care. Spectrum was projecting a loss of $57.1 million, which also is an eye-opening surprise. Beaumont Troy also operates at a reduced capacity. He previously concluded a deal with Akron-based Summa Health but backed out despite already having received regulatory approval. I dont know how we could handle a catastrophe, said a source at Royal Oaks ER. Whats becoming increasingly obvious is how Freese Decker, like John Fox, is prone to making public statements that have no basis in fact. 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 deal will invariably be good for Fox, as he will likely get a very lucrative exit package to sail into the Georgia sunset. But Beaumonts release last month announcing her elevation to chair to replace John Lewis provides some insight. Still, Beaumont is clearly going to be a financial albatross on Spectrums operations for quite some time. Meet Michael Freed, decidedly among the bravest persons in . He also noted that Beaumont received Medicare advances of $505 million in 2020 that needs to be returned this year. Spectrum was targeting a $156 million operating profit. 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. An additional director will also be named. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Allowing them to continue profiting from their mismanagement would undermine Spectrum managements credibility from the get-go. 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. Lewis resigned as chair just prior to Fox announcing Spectrums takeover and left the board in December. Ohios AG has won a series of landmark settlements taking on healthcare companies. 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. 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.. 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