'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Beaumont at one point claimed to have 38,000 employees, but with layoffs and unfilled positions its not clear how many employees remain. Marshall is big news in Michigan these days, as the state has earmarked more than $1 billion in subsidies for Ford Motor Co. to build an electric battery plant on . 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. Reach the writer ateric@starkmanapproved.com. Spectrum appears to have grown organically, focused on a region it knows well. In Dearborn, the nursing shortage is so acute that an ICU operates at 60 percent capacity. 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. Spectrums four-person communications team also ignored a request for comment. Freese Decker grabbed the brass ring, but it was badly tarnished. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. Starkman: Why Beaumont's John Fox Could Haul More Than $30 Million Back to Atlanta Tweet. But unlike Beaumont, Henry Fords staffing issues arent due to mismanagement. Spectrum was targeting a $156 million operating profit. Under Freese Deckers leadership, Spectrum experienced considerable turnover of its Black employees, some of whom approached an attorney to explore whether they had cause to file a discrimination lawsuit. 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. Rather than having people speculate he was passed over, he chose to step down in advance. He's even willing to. Whats notable about the joint announcement and Beaumonts internal communications is whats missing. How Absurd. The list goes on. 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,. 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. Said a veteran Troy ER source: Ive never seen anything like this in all my years of nursing. Share. Beaumont Health CEO John Fox has no shame. Reach Eric Starkman at: eric@starkmanapproved.com. 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. 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,. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. 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. Freed is seemingly unaware of how desperate Beaumont CEO John Fox is to find a merger partner and complete the sale before year-end. Merging with Beaumont would more than double Spectrums size in some areas. The silence is understandable. 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. What, if any, role Wilson will play after the merger hasnt been disclosed. The FTCs approval isnt certain, as President Biden has asked the agency to be more critical of mergers. 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. Soon after, Fox announced the Advocate Aurora deal. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. We are incredibly excited about the impact the BHSH Beaumont Health Nurse Scholar program will have in health care and for our communities.. 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. Spectrums takeover must be approved by Michigan Attorney General Dana Nessel and the Federal Trade Commission. 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. Turns out Beaumonts reported $4 billion reserve also dwindled by the time Fox turned over the keys to Freese Decker. Beaumont is a crippled hospital network on management life support. 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. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. Fox owns homes in Atlanta and North Carolina, Wilsons primary home is in Grand Rapids, Jordan, Beaumonts chief counsel, commutes from Atlanta, as does Susan Grant, the companys chief nursing officer. That would mean there wouldnt be one senior executive from Beaumont involved in the management of the combined hospital systems. 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. A traditional Bachelor of Science degree in nursing is typically four years. In his video, Fox was wearing a pinstripe suit jacket, not his trademark blue blazer. Spectrum CEO Tina Freese Decker obviously believes the Beaumont merger is already a done deal. 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. 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. 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. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. By comparison, BHSH will have 22 hospitals and 64,000 employees. Beaumont Troy also operates at a reduced capacity. In his letter, Freed expresses concern that seven Beaumont directors will be named to the combined Spectrum-Beaumont board and that they could ultimately exert undue influence. Carey has spent more than 20 years as a . 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. Many executives ask me privately, How many Black people do I have to have?. I can suspect what the problem is but, without transparency, I cant know.. 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. Beaumonts orthopedic surgeons, ranked among the best in the country, are doing their lucrative joint replacement surgeries at area ambulatory centers. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. 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. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Reach the writer ateric@starkmanapproved.com. A company is headquartered where the CEO is based. 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. Beaumont nurses and nurse anesthetists quit in droves, joining staffing agencies that paid them more money and ensured them better working conditions. Reach Eric Starkman at: eric@starkmanapproved.com. 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. Michigan Gov. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. 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. An additional director will also be named. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. 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. The anesthesiologists did this while earning a fraction of their . 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. Fox said Beaumont plans to ask for military assistance to support its other facilities. 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, who owns homes in Atlanta and North Carolina, cant be bothered to even create the appearance that he cares about Beaumonts future. Spectrumreportedthat Beaumonts operations already have racked up nearly $100 million in losses. Beaumont derailed the effort after spending nearly $2 million on union busters, furthering ill will among its nurses. . Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. 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. 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. 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 spokesman Mark Geary ignored a request for comment, which he typically does. Working at Beaumont under Fox and his former COO Carolyn Wilson was a hellacious HR experience, and the pandemic worsened the situation. 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. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. Spectrums takeover of Beaumont was a deal that should never have been allowed. 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. 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. Why would Beaumont nurses want to remain on staff when they can make more money working at a staffing agency? Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. As often happens when you meld two organizations, the weaker one brings the stronger one down. 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. She never followed up with a comment. 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. Beaumont Troy is a Level II and must also be prepared to handle a wide range of emergencies. Reach Eric Starkman at: eric@starkmanapproved.com. 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. Its Beaumonts attempt to mislead southeastern Michigan residents that they arent losing a local institution. Terms of the deal arent disclosed, likely because Spectrum is gaining control of Beaumont and its $3.5 billion reserve for next-to-nothing, and possibly paying nothing at all based on Foxs previous deal making. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Tina Freese Decker, Spectrum president and CEO, a month membership or a one-time donation, 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, Andy Levin Goes After Amazon's Union Busting in Alabama, but Silent About Beaumont. Under their oversight, Beaumont suffered a precipitous decline in reputation and quality of care. 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.. Support our reporting and commentary by becoming a Deadline Detroit member for as little as $3 per month. Giving some of them oversight over a considerably bigger hospital system is reckless and irresponsible. For years, former Beaumont CEO John Fox was paid more than $6 million annually because of his supposedly deft fiscal management. Virtually all of Fox's senior management team resigned or was . By Eric Starkman Beaumont Health CEO John Fox has no shame. By that measure Fox, Wilson, and Wood have poor performance scorecards. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. Gretchen Whitmer were silent. 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 massive financial loss.. 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. 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? Craig's guest is Eric Starkman, Deadline Detroit contributor and author of the blog Starkman Approved. Disgruntled Staff. 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. 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. 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. 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. Fox didnt disclose how much Beaumont will spend to fund its real estate expansion. That would mean it will take at least five years for Spectrums nurse program to bear fruit, so it wont do anything to alleviate the current nursing shortage. 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