But ER nurses are angry with Melissa Foreman Lovell, Troys chief nursing officer, who they say rarely appears at the hospital. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Michigan Gov. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. As a result, patients requiring hospital admission must remain in the ER, diverting beds and staff normally dedicated to treating emergencies. However, Beaumont Royal Oak is one of the busiest surgical centers in the country. The Detroit News. Spectrum is a competently run company on an upward trajectory, while Beaumont is a very damaged goods operation. Thats right, CFO Matthew Cox referred to Beaumont as an acquisition, not a merger as Freese Decker and Fox led the media to believe. By that measure Fox, Wilson, and Wood have poor performance scorecards. Reach Eric Starkman at: eric@starkmanapproved.com. 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. Disgruntled Staff. Beaumonts orthopedic surgeons, ranked among the best in the country, are doing their lucrative joint replacement surgeries at area ambulatory centers. To support Deadline Detroit's independent. He also noted that Beaumont received Medicare advances of $505 million in 2020 that needs to be returned this year. 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 . Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. 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. 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 show that when hospitals combine, healthcare prices increase while patient quality declines. Beaumont reported operating revenues of $4.6 billion in 2020 and is only an eight-hospital system. Moreover, rookie nurses still have a lot to learn. I dont know how we could handle a catastrophe, said a source at Royal Oaks ER. I know little about Fream, who served as Beaumonts vice chair for several years. 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 FTC has a backlog of merger applications, and it could take months before it decides on the Spectrum/Beaumont deal. Spectrums takeover must be approved by Michigan Attorney General Dana Nessel and the Federal Trade Commission. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. And given the sorry state of Beaumont resulting from Foxs leadership, its an emergency rescue. Reach Eric Starkman at: eric@starkmanapproved.com. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Fox cancelled the Advocate Aurora deal a few days later. Whats becoming increasingly obvious is how Freese Decker, like John Fox, is prone to making public statements that have no basis in fact. 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 higher health care costs in that state. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Theres no prestige working at Beaumont anymore. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. Spectrum and Beaumont are not corporate equals. 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. I only see the potential for massive financial loss., Freed warns Spectrums directors: When you sign the documents that will permanently change this region, your signature will forever hold you accountable for the repercussions.. Reach Eric Starkman at: eric@starkmanapproved.com. 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. 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. 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. 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. 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. Consultants are part of the . Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. The evidence is overwhelming that when hospitals merge, prices go up. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who . But Spectrums management is 100 percent running the show. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. 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. 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. Freed has vowed he will hold Spectrums directors accountable for the repercussions to his Grand Rapids community. 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. Spectrums financial statements indicate that cash and investments from the acquisition was $3.2 billion. Naming Fream as chairman was done for optics, an attempt to assure Southeastern Michigan residents that their interests would be protected if Spectrum and Beaumont merge. 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. 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. By Eric Starkman Beaumont Health CEO John Fox has no shame. Funny we only now are learning just how badly Fox ran Beaumont into the ground. Spectrum, with $6.9 billion in revenues, operates 14 hospitals in the western side of the stateand has 30,000 employees. 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. Reach Eric Starkman at eric@starkmanapproved.com . Freese Decker is likely assured a big pay increase and bonus. Lewis previously served on the board of one of Beaumonts predecessor companies and likely didnt want to continue after Beaumont completed its merger. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. 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. 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. One of the deciding factors in evaluating merging Beaumont and Spectrum will be the financial terms of the deal. Disgruntled Staff. A trade publication quoted Freese Decker today as saying theres widespread enthusiasm in western and southeastern Michigan for the merger. Its a vicious cycle, one that I doubt Spectrum has figured out how to solve. Less readily understood is why Spectrum would want to do a deal. Reach Eric Starkman at: eric@starkmanapproved.com. 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. She never followed up with a comment. Hospital plans are designed to incentivize doctors not to order or recommend expensive procedures in order to reduce payouts. Despite Freeds damning allegations, Beaumont spokesman Mark Geary ignored a request for comment. Reach Eric Starkman at: eric@starkmanapproved.com. 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. 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. 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. Reach the writer ateric@starkmanapproved.com. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. That resulted in Beaumont staff nurses working alongside nurses getting paid considerably more money doing the same job, prompting more staff nurses to leave. The merger rationale was that hospitals benefitted from getting bigger and achieving economies of scale. Freese Decker grabbed the brass ring, but it was badly tarnished. Freed is seemingly unaware of how desperate Beaumont CEO John Fox is to find a merger partner and complete the sale before year-end. 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. Beaumont CEO John Fox . My guess is that if Freed understood how Beaumonts directors stood idly by while Beaumont imploded, hed challenge their appointments regardless. I dont see any value in this merger, Freed says of the marriage deal Spectrum and Beaumont jointly announced last week. 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. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, Michael Freed doesn't "see any value in this merger. Nessel also has made that claim. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. 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. '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 company announced this week that Aaron Gillingham, Beaumont Healths senior vice president and chief human resources officer and interim chief compliance officer, has resigned. 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. It is said that you can judge a person by the company they keep. Fox disclosed that Beaumont has extensively expanded its use of nurse staffing agencies, which could exacerbate already poor morale among its nurses. Beaumont is having difficulty attracting mid- and lower-level employees as well. 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. 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. Spectrums board strikes me as pretty buttoned up, so they might not yet appreciate the extent of how damaged Beaumont really is. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. That wasnt entirely true. 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