This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. 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. The FTC has a backlog of merger applications, and it could take months before it decides on the Spectrum/Beaumont deal. Tina Freese Decker, president and CEO of Spectrum, is chair of the Michigan Health & Hospital Association. Spectrums board is certainly a lot tougher on compensation. He didnt address staff as folks as hes repeatedly done in the past and he looked more relaxed and rested than in previous videos. Beaumont is a crippled hospital network on management life support. Reach Eric Starkman at: eric@starkmanapproved.com. Even when Fox announces a merger deal with Spectrum, theres still no guarantee it will go through. Southeastern Michigan residents shouldnt look to Rep. Andy Levin to save the day. 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. Hospital plans are designed to incentivize doctors not to order or recommend expensive procedures in order to reduce payouts. 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 scuttlebutt around town is that Beaumont directors believe that a merger is the only way to get rid of Fox. 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. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. 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. 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 derailed the effort after spending nearly $2 million on union busters, furthering ill will among its nurses. Reach the writer ateric@starkmanapproved.com. Freese Decker grabbed the brass ring, but it was badly tarnished. Ohios AG has won a series, Today is indeed a historic day. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Even more disconcerting: Beaumont chairwoman Julie Fream will serve as chairwoman if the companies merge. Thats how Beaumont ended up in the sorry state that it did. Reach Eric Starkman at: eric@starkmanapproved.com. 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. In another example of how Freese Decker is just like John Fox in looking to deceive and distract, Spectrum announced it will provide Oakland University with $20 million over the next five years for a Beaumont Health Nurse Scholar Program. BHSH will be the biggest hospital network in Michigan and the states biggest employer. 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. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. The courage it took for Freed to write and post a letter questioning the judgment of Spectrums board and reminding them of their fiduciary responsibilities cannot be emphasized enough. 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. Beaumont is having difficulty attracting mid- and lower-level employees as well. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. Despite Freeds damning allegations, Beaumont spokesman Mark Geary ignored a request for comment. He's even willing to. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. Jane Jordan, Beaumonts general counsel, is said to have stuck around only to help Fox negotiate a merger deal. . To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. The quality of care has declined to such a degree that insiders readily admit they wouldnt entrust their families care to the hospital. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. 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. But ER nurses are angry with Melissa Foreman Lovell, Troys chief nursing officer, who they say rarely appears at the hospital. Reach Eric Starkman at: eric@starkmanapproved.com. Said a veteran Troy ER source: Ive never seen anything like this in all my years of nursing. 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. Nurses employed by staffing agencies are paid more than staff nurses performing the same functions. Fortunately, Freese Deckers western Michigan businesses were healthy enough to allow Spectrum to eke out an operating profit of $119.7 million despite Beaumonts losses. 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. 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. And given the sorry state of Beaumont resulting from Foxs leadership, its an emergency rescue. Beaumont Troy also operates at a reduced capacity. 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. Spectrums prices are higher than Beaumonts, as the hospital network has significantly less competition in western Michigan. 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. Fox and spinmeister Geary have a history of making statements that are deceptive and misleading, a compilation of which can be found here. 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. 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. Allowing them to continue profiting from their mismanagement would undermine Spectrum managements credibility from the get-go. He tweeted on Thursday that he was cautiously optimistic about certain aspects of the partnership. Spectrumissued a statement to MiBizabout the disastrous financials reminiscent of the spin Fox served up during his seven-year tenure. Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. Studies also show that hospital mergers also result in a decline in patient care. He's even willing to. 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. Corewell Health has appointed Dr. Daniel Carey as the new president for its Beaumont Hospital campus in Royal Oak. Beaumont spokesman Mark Geary ignored a request for comment, which he typically does. 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. BHSH is what Spectrum calls its combined Beaumont and Spectrum operations. Understandably, Spectrum is a more profitable hospital system, but its profits also are bolstered by its lucrative Priority Health insurance arm. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. Fox isnt the only hospital executive looking to exploit the perception that the unvaccinated are responsible for wreaking havoc. Lewis previously served on the board of one of Beaumonts predecessor companies and likely didnt want to continue after Beaumont completed its merger. 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. 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. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. By Eric Starkman Beaumont Health CEO John Fox has no shame. Fox cancelled the Advocate Aurora deal a few days later. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Gretchen Whitmer were silent. Reach Eric Starkman at: eric@starkmanapproved.com. Freese Decker is likely assured a big pay increase and bonus. 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. 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. Under Susicks leadership, Beaumont Royal Oak precipitously declined, and internally she was viewed as a Fox sycophant. Turns out Beaumonts reported $4 billion reserve also dwindled by the time Fox turned over the keys to Freese Decker. Though Spectrum Health is a respectable hospital network run by a management and board deeply committed to the Grand Rapids area, the evidence is overwhelming that southeastern Michigan residents wont ultimately benefit from the deal. Consultants are part of the . In a further diss to the community, Beaumont converted a laundry facility into a makeshift morgue without getting permits. Spectrums joint release with Beaumont says the aim of the deal is to make health care more affordable for the communities we serve. Heres my challenge to Freese Decker: For every independent study she can come up with showing where hospital mergers resulted in more affordable care, I will come up with two showing the opposite. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. Studies show that when hospitals combine, healthcare prices increase while patient quality declines. Working at Beaumont under Fox and his former COO Carolyn Wilson was a hellacious HR experience, and the pandemic worsened the situation. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. All of Spectrums top executives are based in Grand Rapids, which is understandable since none of Foxs top lieutenants remained with the company. By that measure Fox, Wilson, and Wood have poor performance scorecards. 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,. Is that still on track given Beaumonts oceans of red ink? Its a vicious cycle, one that I doubt Spectrum has figured out how to solve. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. 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. There are some serious issues with NorthStar Anesthesia, the Texas-based outsourcing company that Wilson bet the farm on and losing badly so far. To support Deadline Detroit's independent. 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. 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. Fox said Beaumont plans to ask for military assistance to support its other facilities. The nursing shortage in our state is a critical and complex challenge that must be solved with bold and collaborative solutions, the Detroit Free Press quoted Freese Decker as saying. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. Why isnt Freese Decker following through on that supposedly great initiative? Fox is about 70, and given his failed performance, it was a given that he wouldn't lead the combined Spectrum Beaumont entity. Its almost a mantra among Beaumont Royal Oak nurses that Henry Ford treats their nurses like royalty. Beaumont has had a contentious relationship with its Royal Oak nurses for years, prompting them to try to organize a union two years ago. More importantly, I doubt that Spectrums doctors would feel the need to circumvent management in the first place. My guess is that if Freed understood how Beaumonts directors stood idly by while Beaumont imploded, hed challenge their appointments regardless. The deal, which was announced Thursday, is still subject to various regulatory approvals. 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. 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. We are incredibly excited about the impact the BHSH Beaumont Health Nurse Scholar program will have in health care and for our communities.. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. Craig's guest is Eric Starkman, Deadline Detroit contributor and author of the blog Starkman Approved. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. She bolted last month. Newsweek Ranks 3 Beaumont Hospitals Among Best in U.S. One Down, Three to Go. The combined Spectrum and Beaumont operations will temporarily be called BHSH System. Fox didnt disclose how much Beaumont will spend to fund its real estate expansion. By Eric Starkman. Whats becoming increasingly obvious is how Freese Decker, like John Fox, is prone to making public statements that have no basis in fact. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Spectrum has also been embroiled in controversy that made national news. 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.
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