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. Moreover, rookie nurses still have a lot to learn. To be sure, Beaumont isnt alone in suffering from a nursing shortage. Beaumont Troy also operates at a reduced capacity. Bloomberg on Wednesday posted an editorial warning about the growing merger trend among hospitals, noting that it leads to higher insurance prices. 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. 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. 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.. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. Spectrums board is certainly a lot tougher on compensation. The merger rationale was that hospitals benefitted from getting bigger and achieving economies of scale. 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. Copyrightdocument.write(new Date().getFullYear());Deadline Detroit, Inc. - All Rights Reserved, A Zoom video conference call that was leaked this week, a month membership or a one-time donation, 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 Health's Merger Partner Reveals its Disingenuous, Deceptive and Disrespectful Nature, Spectrum Healths Black Employees Explore Class Action Lawsuit Alleging Systemic Racism, Beware! Beaumont is a crippled hospital network on management life support. Share. Speaking of Oakland University, when Fox announced his ill-fated attempt to merge Beaumont into Chicago-based Advocate Aurora, one of the few benefits he touted was that Advocate Aurora had agreed to move Oakland Universitys William Beaumont School of Medicine to Beaumonts Royal Oak campus. 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. 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. 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. 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. 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. Fox has a change of control clause in his contract, meaning he will likely receive a lucrative exit package. 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. Freese Decker grabbed the brass ring, but it was badly tarnished. 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. 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. The resignations were due to working conditions and management dissatisfaction, not Covid. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Starkman: Prominent Beaumont Cardiologist Calls for Ouster of Corporate Leaders, The Clueless Generosity of Beaumont CEO John Fox, Beaumont's Bonuses and the Sorry State of Michigan's Political Leadership, The Controversial Company Beaumont CEO John Fox Keeps, Beaumont Chief John Fox to Detroit-Area Children -- FU Too, The Beaumont Health Superheroes Who Spoke Truth to Power, The Discredited PR Spin of Beaumont Health CEO John Fox, Beaumont and Advocate Aurora End Merger Discussions, Prominent Beaumont Donor Calls for Firing of CEO John Fox and His Key Executives, 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. 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. Various studies, including one published in 2019 by Harvard researchers, also show that hospital mergers result in worsened patient experiences. 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. The anesthesiologists did this while earning a fraction of their . As one source commented: Why doesnt the board just give Fox $25 million to go away?. So What? Despite warning the pandemic would destroy U.S. hospitals, Beaumont overall had a very good year in 2020, increasing its reserve by $1 billion to $3.5 billion. 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 employees and vendors are encouraged to reach out, with confidentiality assured. I know little about Fream, who served as Beaumonts vice chair for several years. In a company video posted on Vimeo Thursday, Beaumont CEO John Fox disclosed that Beaumont plans to spend significant dollars to embark on a three to five-year plan to expand the health systems private bed capacity. When Fox arrived, Beaumont Royal Oak was among the best regional hospitals in the country; today it can best be described as a giant but mediocre community hospital. The deal will invariably be good for Fox, as he will likely get a very lucrative exit package to sail into the Georgia sunset. Spectrum also experienced considerable turnover of Black employees, some of whom considered filing a class action lawsuit . 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. Most of them arent qualified to serve on the board of a major hospital company and the proof is in the Beaumont pudding. By Eric Starkman. In addition to her Beaumont debacle, theres been considerable turnover in Spectrums senior ranks, mostly women. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. He also noted that Beaumont received Medicare advances of $505 million in 2020 that needs to be returned this year. View Comments. There is compelling research showing that hospital mergers result in higher patient costs and reduced quality of care. 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. 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. Spectrum was projecting a loss of $57.1 million, which also is an eye-opening surprise. To support Deadline Detroit's independent journalism, please sign up for a $3a month membership or a one-time donation. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. Disgruntled Staff. However, Beaumont Royal Oak is one of the busiest surgical centers in the country. Still, Beaumont is clearly going to be a financial albatross on Spectrums operations for quite some time. Beaumont spent nearly $2 million on union busters when nurses at the Royal Oak hospital attempted to organize in 2019. I dont see any value in this merger, Freed says of the marriage deal Spectrum and Beaumont jointly announced last week. Whats notable about Foxs disclosure is the seeming priorities of Spectrum compared to Advocate Aurora, the Chicago-based hospital system that Fox tried to give Beaumont away to in June 2020 under terms so obscenely favorable to Advocate Aurora, he couldnt pull it off. 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. Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. Spectrum has also been embroiled in controversy that made national news. Nurses employed by staffing agencies are paid more than staff nurses performing the same functions. Rather than having people speculate he was passed over, he chose to step down in advance. Beaumont does not have a good reputation regarding how they treat employees. Beaumont, consistent with its practice of putting a spin on undesirable news, notified employees that it is making "good progress" toward . 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. Thats right, CFO Matthew Cox referred to Beaumont as an acquisition, not a merger as Freese Decker and Fox led the media to believe. BHSH will be the biggest hospital network in Michigan and the states biggest employer. Instead, thanks to aggressive cost cutting and other misguided decisions by Fox and COO Carolyn Wilson, Beaumont imploded. Also unavailable for clarifications will be Dawn Geisert, Beaumonts former compliance chief. 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. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? Spectrum is a competently run company on an upward trajectory, while Beaumont is a very damaged goods operation. Fox is about 70, and given his failed performance, it was a given that he wouldn't lead the combined Spectrum Beaumont entity. Ohios AG has won a series, Today is indeed a historic day. Starkman: Why Beaumont's John Fox Could Haul More Than $30 Million Back to Atlanta Tweet. Henry Ford Hospital announced this week that it was closing 120 inpatient beds systemwide due to staffing shortages. The deal, which was announced Thursday, is still subject to various regulatory approvals. Said a veteran Troy ER source: Ive never seen anything like this in all my years of nursing. A trade publication quoted Freese Decker today as saying theres widespread enthusiasm in western and southeastern Michigan for the merger. Nursing shortages are causing havoc at other Beaumont hospitals as well. I can suspect what the problem is but, without transparency, I cant know.. February 02, 2022, 4:58 PM . 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. The writer, a Los Angeles freelancer and formerDetroit News business reporter, blogs atStarkman Approved. 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. 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. 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. Reach Eric Starkman at: eric@starkmanapproved.com. How Absurd. Fox previously disclosed he talked to more than 100 hospital systems hoping to find a corporate bride for Beaumont. Beaumont Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. By Eric Starkman. 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. 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. 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. 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.. Reach the writer ateric@starkmanapproved.com. The list goes on. Fox also disclosed that Beaumont has earmarked $40 million to purchase state-of-the-art beds, some of which are already being delivered. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved.. By Eric Starkman. Also, if you wish to support Deadline Detroit's. 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? Also disclosed that starkman detroit beaumont has earmarked $ 40 million to go away? hes repeatedly done in country., a Los Angeles is a historic day million on union busters when nurses at the Royal Oak is of... 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