John Fox, the Atlanta carpetbagger who washed up on the shores of southeastern Michigan seven years ago to bolster Beaumont Healths profits and gussy up Metro Detroits biggest hospital network so that he could sell it, appears hes pulled off what he set out to do. 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. Reach Eric Starkman at: eric@starkmanapproved.com. Spectrum also experienced considerable turnover of Black employees, some of whom considered filing a class action lawsuit . Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, AG Dana Nessel and Gov. 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. 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. By Eric Starkman . So What? 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. 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 nursing scholarship wont alleviate Spectrums immediate nurse staffing issues. The joint release promotes the benefits of Priority Health, Spectrums insurance plan. 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. Fox took his marching orders from John Lewis, a retired Comerica executive who came from Oakwood and was named chairman of the combined organizations. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Michael Freed doesn't "see any value in this merger. Yet the, Nessels do nothing stance on healthcare matters is in sharp contrast to her Massachusetts counterpart Maura Healey, who has moved to block the expansion of Massachusetts General Brigham on the grounds it will lead to, 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. The FTC has a backlog of merger applications, and it could take months before it decides on the Spectrum/Beaumont deal. The list goes on. Thats how Beaumont ended up in the sorry state that it did. 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. Its totally bizarre.. Reach Eric Starkman at: eric@starkmanapproved.com. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Nonprofit hospitals are supposed to manage their investments conservatively, opting for boring short-term duration bonds and other low risk investments. What, if any, role Wilson will play after the merger hasnt been disclosed. The Detroit News. 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. Beaumont Troy also operates at a reduced capacity. Another open position is the Chief Inclusion, Equity, Diversity and Social Impact Officer.. To the distaste of the pediatric heads colleagues, Susick walked him out of the hospital in front of his staff. 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. Starkman: Beware! Beaumonts orthopedic surgeons, ranked among the best in the country, are doing their lucrative joint replacement surgeries at area ambulatory centers. In what will likely be his final FU to Metro Detroit, Fox will depart on Friday. Destroying Beaumont and Spectrum Health, Covid Not Responsible for ER Debacles at Beaumont RO and Troy, Sh** Show at Beaumont Endoscopy Suite in Chaos Amid Nursing Shortage, C-Section Horror at Beaumont Lawsuit Claims Surgeon Left Sponge in Patients Abdomen, Former Spectrum CFO Trashes Beaumont Merger and Warns of 'Massive Financial Loss', Beaumont's Merger Partner Reveals its Disingenuous, Deceptive, Disrespectful Nature, Spectrum Healths Black Employees Explore Class Action Lawsuit Alleging Systemic Racism, Beware! But Beaumonts release last month announcing her elevation to chair to replace John Lewis provides some insight. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Moreover, rookie nurses still have a lot to learn. Giving some of them oversight over a considerably bigger hospital system is reckless and irresponsible. 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.. According to a source, some travel nurses are being paid lucrative wages to work only three or four shifts a week. to Michigan Tweet. Reach Eric Starkman at: eric@starkmanapproved.com. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Fox cancelled the Advocate Aurora deal a few days later. By Eric Starkman Beaumont Health CEO John Fox has no shame. By Eric Starkman. 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. Freese Decker cant say she wasnt warned. In a major blow to the hospital, Reza Dabir, Dearborns top cardiothoracic surgeon, resigned to join Ascension Health. Indiana University Health has 16 hospitals and 36,000 employees. 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. 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. 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. 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. (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. Turns out Beaumonts reported $4 billion reserve also dwindled by the time Fox turned over the keys to Freese Decker. 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. Reach Eric Starkman at eric@starkmanapproved.com . 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.. Beaumont was once mostly staffed by highly skilled veterans, among the best in healthcare. 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 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. 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. 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. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. 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. Whats notable about the joint announcement and Beaumonts internal communications is whats missing. "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. Beaumont is awaiting approval to be rescued by Spectrum Health in Grand Rapids. Starkman: Beaumont's Woes Prove CEO Tina Freese Decker Unfit to Run Michigan's Biggest Hospital System Tweet Share August 19, 2022, 3:14 PM The writer, a Los Angeles freelancer and former. 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. I'm officially declaring Beaumont CEO John Fox, the Atlanta carpetbagger whose greed and mismanagement destroyed Metro Detroit's biggest hospital system and put the health and safety of areas residents at risk, "The Cookie Monster." According to one source, Beaumont at least until recently had more than 3,000 job openings. Beaumonts board failed in their duties overseeing the hospital system they were responsible for protecting. Spectrum and Beaumont are not corporate equals. 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 Health was significantly impacted by these financial and workforce headwinds that were particularly strong in Southeast Michigan (in the second quarter). Meet Michael Freed, decidedly among the bravest persons in Michigan and one who acts on his conscience when it comes to protecting the health care of his hometown Grand Rapids community. The Chief People Officer position is listed as open, indicating that Ries isnt getting the top HR job at BHSH. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Reach Eric Starkman at: eric@starkmanapproved.com. There are no bios or photos of Beaumonts other directors, and thats by intent. In addition to her Beaumont debacle, theres been considerable turnover in Spectrums senior ranks, mostly women. Carey has spent more than 20 years as a . 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.. He tweeted on Thursday that he was cautiously optimistic about certain aspects of the partnership. 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. Beaumont CEO Fox and COO Wilson Must Go Now! The release, which Fream presumably signed off on, said her appointment was part of a normal governance leadership rotational process.. 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. 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. Reach Eric Starkman at: eric@starkmanapproved.com. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. Fox also disclosed that Beaumont has earmarked $40 million to purchase state-of-the-art beds, some of which are already being delivered. She bolted last month. 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 FTC is headed by Lina Khan, a Democrat appointed by Biden and sworn in last June 15 to a three-year term. 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. Michigan Gov. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Beaumont CEO Fox and COO Wilson Must Go Now! This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. I can suspect what the problem is but, without transparency, I cant know.. 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. Pamela Ries, senior vice president and head of HR at Spectrum, is listed as chief integration officer. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Susan Grant, the chief nursing officer for all of Beaumont, has her primary home in Atlanta. The quality of care has declined to such a degree that insiders readily admit they wouldnt entrust their families care to the hospital. Share. Beaumont CEO John Fox will forever be remembered in the Detroit area as a con man. 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. Michigan Attorney General Dana Nessel could also have moved to block the Spectrum deal or demanded certain concessions, but she has proven to be a regulatory lightweight, particularly on matters relating to healthcare. Beaumont derailed the effort after spending nearly $2 million on union busters, furthering ill will among its nurses. Spectrums board is certainly a lot tougher on compensation. 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. In his video, Fox was wearing a pinstripe suit jacket, not his trademark blue blazer. 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,. 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. Virtually all of Fox's senior management team resigned or was . 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. Studies also show that hospital mergers also result in a decline in patient care. 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. 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. September 15, 2020, 9:36 PM . Fox disclosed that Beaumont has extensively expanded its use of nurse staffing agencies, which could exacerbate already poor morale among its nurses. 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. The evidence is overwhelming that when hospitals merge, prices go up. Spectrum CEO Tina Freese Decker obviously believes the Beaumont merger is already a done deal. Freese Decker this week toured Beaumont Troy Hospital, and notably neither Fox nor COO Carolyn Wilson were in tow. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Spectrums financial statements indicate that cash and investments from the acquisition was $3.2 billion. 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. 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. Spectrum CEO Tina Freese Decker will lead the combined company. But ER nurses are angry with Melissa Foreman Lovell, Troys chief nursing officer, who they say rarely appears at the hospital. 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.. Instead, thanks to aggressive cost cutting and other misguided decisions by Fox and COO Carolyn Wilson, Beaumont imploded. 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