. John Kerndl, who joined Beaumont in 2016, quit in March. The Detroit News. The companys chief revenue officer left earlier this month. Freed doesnt disclose his hunch about Beaumonts financials, which received less oversight than he possibly knows. The situation has become so acute that an ICU patient was recently treated in Troys ER. 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. The only aspect of the deal worth cheering about is that Fox will finally be removed from Beaumont, but the company shouldnt have to lose its independence to make that happen. 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. Fox said Beaumont plans to ask for military assistance to support its other facilities. Fox trumpeted the deal as a win for Southeastern Michigan because he said Advocate Aurora would invest $1 billion to move the William Beaumont Medical School in Rochester to the Royal Oak campus and upgrade Beaumonts technology. 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. 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. BHSH will be the biggest hospital network in Michigan and the states biggest employer. That could further worsen Beaumonts nursing shortage. Freese Decker held various strategic and operational roles before being named to the top job in 2018. That leaves the hospital with just two cardiothoracic surgeons, down from nine years ago. Starkman: Beaumont's FU to Metro Detroit and its Covid-19 Workers Tweet. 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. 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. According to the most recently available filings, Freese Decker earned $3.9 million in 2018. She bolted last month. Is that still on track given Beaumonts oceans of red ink? 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. Rather than having people speculate he was passed over, he chose to step down in advance. As one source commented: Why doesnt the board just give Fox $25 million to go away?. Spectrum appears to have grown organically, focused on a region it knows well. 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. Virtually all of Fox's senior management team resigned or was . 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Yet the Leapfrog safety rating of Henry Fords flagship hospital in Detroit is a C, while its ambulatory center in more affluent West Bloomfield enjoys an A. HFH chief Lassiter is Black, and almost half of the flagship hospitals staff is nonwhite. The merger rationale was that hospitals benefitted from getting bigger and achieving economies of scale. I imagine Fox is luxuriating at one of his Atlanta or North Carolina manors laughing hysterically at the Michigan executive yahoo who took Beaumont off his hands and no doubt paid him millions as part of the deal. 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,. Spectrums board strikes me as pretty buttoned up, so they might not yet appreciate the extent of how damaged Beaumont really is. A source told me that Barbee was highly regarded among Spectrums Black employees but was frustrated by his inability to achieve meaningful change. 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. 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. 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. Its not unusual for a so-called charge or supervisory ICU nurse to have just one year of experience. Its totally bizarre.. 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.. Disparities in healthcare are typically blamed on racism of U.S. doctors and other health professionals. According to a source, some travel nurses are being paid lucrative wages to work only three or four shifts a week. Freese Decker this week toured Beaumont Troy Hospital, and notably neither Fox nor COO Carolyn Wilson were in tow. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Beaumont institutionally has a very tenuous relationship with truth. 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. 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.. 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 financial terms of the deal will reveal whether Freese Decker is as touchy-feely as she appears or whether she can be quite ruthless when a lucrative financial opportunity presents itself. The joint release promotes the benefits of Priority Health, Spectrums insurance plan. So What? Beaumont does not have a good reputation regarding how they treat employees. 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. 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 company announced this week that Aaron Gillingham, Beaumont Healths senior vice president and chief human resources officer and interim chief compliance officer, has resigned. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. Fox that year was paid $5.9 million. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Spectrum and Beaumont are not corporate equals. 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. Other state attorney generals have also shown a willingness to take on the powerful interests of U.S. hospital companies. I know little about Fream, who served as Beaumonts vice chair for several years. His chief marketing officer resigned last September, his CFO quit in March, his chief compliance officer left a few weeks ago, and his chief revenue officer is out the door in a few days. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. The nursing scholarship wont alleviate Spectrums immediate nurse staffing issues. Many executives ask me privately, How many Black people do I have to have?. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. By Eric Starkman Beaumont Health CEO John Fox has no shame. Another open position is the Chief Inclusion, Equity, Diversity and Social Impact Officer.. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. An additional director will also be named. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Prioritys goal is to capture as much market share as possible and then use that power to reduce what it pays to doctors to cover their services. 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. Spectrums due diligence team will be unable to get clarifications on Beaumonts financials from the companys CFO because it doesnt have one. 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. Share. 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. To support Deadline Detroit's independent. How Absurd. 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. Still, Beaumont is clearly going to be a financial albatross on Spectrums operations for quite some time. Beaumont Troy also operates at a reduced capacity. The resignations were due to working conditions and management dissatisfaction, not Covid. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. 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. Reach Eric Starkman at: eric@starkmanapproved.com. 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. Even when Fox announces a merger deal with Spectrum, theres still no guarantee it will go through. Spectrum was projecting a loss of $57.1 million, which . Gretchen Whitmer. According to an email obtained by the Detroit TV station, Beaumont transferred its Covid patients because the CEO said the hospital system was losing too much money treating them. 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. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. As often happens when you meld two organizations, the weaker one brings the stronger one down. BHSH is what Spectrum calls its combined Beaumont and Spectrum operations. Spectrums joint release with Beaumont says the aim of the deal is to make health care more affordable for the communities we serve. 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