Disgruntled Staff. Reach Eric Starkman at: eric@starkmanapproved.com. 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. Despite Freeds damning allegations, Beaumont spokesman Mark Geary ignored a request for comment. Also fostering ill will is Beaumonts mandate requiring that all employees be vaccinated or be fired. Fox is about 70, and given his failed performance, it was a given that he wouldn't lead the combined Spectrum Beaumont entity. It appears that Beaumont Health CEO John Fox won't be bundling his millions and bidding Michigan goodbye as soon as he hoped. Fox and Wilson could possibly be given lucrative ceremonial or consulting roles, which would antagonize Beaumonts rank-and-file because both executives are widely despised. 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. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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 Michigan Nurses Union vowed it would no longer seek to organize at Beaumont because of the companys climate of fear.. This is Beaumont's latest attempt to merge with another hospital . Six months into Freese Decker's acquisition of Beaumont Health from former controversial CEO John Fox, metro Detroit's biggest hospital system is suffering from a pandemic of red ink. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs at Starkman Approved. Maybe they dont teach this at the University of Iowa from where Freese Decker received her Master of Health Administration, but when a hospital spends nearly $2 million as John Fox did to intimidate nurses at his flagship Royal Oak hospital and derailed a unionizing attempt, it creates bad blood. If Michigan had a competent attorney general or a governor with a healthcare interest beyond abortion rights, the deal would have been derailed. Turns out Beaumonts reported $4 billion reserve also dwindled by the time Fox turned over the keys to Freese Decker. The scuttlebutt around town is that Beaumont directors believe that a merger is the only way to get rid of Fox. Whats becoming increasingly obvious is how Freese Decker, like John Fox, is prone to making public statements that have no basis in fact. Spectrums board includes Doug DeVos, co-chair of Amway, whose family is among the most powerful in Michigan. Beaumont Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. 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. Its a no-brainer to understand why Fox desperately needs to pull off the Spectrum merger. That amounts to a Spectrum takeover in my book. Theres no prestige working at Beaumont anymore. Beaumont CEO John Fox is headed for the door Friday. Joseph Hill, who was hired to be diversity chief at Hermann Health System in Houston, was fired even before starting his job allegedly because he had already identified racial bias at the hospital. Several prominent Beaumont doctors warned the board they had serious concerns about the anesthesia outsourcing company before it took over, but Beaumonts board ignored the concerns. By Eric Starkman . Beaumont institutionally has a very tenuous relationship with truth. 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. Gretchen Whitmer. 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. Fox has blamed the pandemic for Beaumonts HR problems, but the issues predated Covid. Beaumont spokesman Mark Geary ignored a request for comment. Even Beaumont employees suffering from myopia can read this writing . Under Susicks leadership, Beaumont Royal Oak precipitously declined, and internally she was viewed as a Fox sycophant. Beaumont at one point claimed to have 38,000 employees, but with layoffs and unfilled positions its not clear how many employees remain. Bloomberg on Wednesday posted an editorial warning about the growing merger trend among hospitals, noting that it leads to higher insurance prices. Spectrums board strikes me as pretty buttoned up, so they might not yet appreciate the extent of how damaged Beaumont really is. But Beaumonts release last month announcing her elevation to chair to replace John Lewis provides some insight. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. 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. Freed has vowed he will hold Spectrums directors accountable for the repercussions to his Grand Rapids community. The writer, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Despite the pandemic, which has forced Spectrum to call for military assistance to support its flagship hospital, CEO Tina Freese Decker recently disclosed that shes been focused on integrating Spectrum and Beaumont, creating Michigans biggest hospital system as well as the biggest employer. A lifelong Michigander with an impressive background, Barbee resigned in October to join Indiana University Health as head of HR. Southeastern Michigan residents shouldnt look to Rep. Andy Levin to save the day. 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. Fox didnt disclose how much Beaumont will spend to fund its real estate expansion. 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. That could further worsen Beaumonts nursing shortage. In April 2020, at the height of Michigan's pandemic, Metro Detroit's biggest hospital system called Beaumont Health without explanation closed its facility designated to treat Covid patients . It should give Grand Rapids residents cold shivers that the chair of Spectrum is Julie Fream, who was vice chair of Beaumont when Fox destroyed the hospital system's once nationally vaunted reputation. Soon after, Fox announced the Advocate Aurora deal. Thats how Beaumont ended up in the sorry state that it did. The quality of care has declined to such a degree that insiders readily admit they wouldnt entrust their families care to the hospital. Studies out of Israel suggest that Pfizers vaccine protection begins waning after six months, but the FDA said that U.S. data is inconclusive. A traditional Bachelor of Science degree in nursing is typically four years. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Have you tried to find Beaumont Healths financial statements? Freed asks. 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. Spectrum was projecting a loss of $57.1 million, which also is an eye-opening surprise. Companies often create diversity positions for window dressing purposes. Ohios AG has won a series of landmark settlements taking on healthcare companies. To support Deadline Detroit's independent. According to the most recently available filings, Freese Decker earned $3.9 million in 2018. Spectrums four-person communications team also ignored a request for comment. Fox, who owns homes in Atlanta and North Carolina, cant be bothered to even create the appearance that he cares about Beaumonts future. And there is no mention of what, if any, role Beaumont COO Carolyn Wilson will play after the merger. Michigan Gov. 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. Board chair Fream, who holds a Harvard MBA, told The Detroit News that Beaumont's board used an "independent consultant" to determine Fox's compensation. No doubt the pot of cash is the bait that got the merger talks going. 'The Week That Was:' Will Kristina Karamo Seriously Damage Michigan's Republican Party? 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. 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. 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. 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. 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. Spectrums due diligence team will be unable to get clarifications on Beaumonts financials from the companys CFO because it doesnt have one. 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.. As an example of their power and influence, they have managed to derail enforcement of rules the Trump Administration issued requiring hospitals to be transparent about their prices. Starkman: Beaumont CFO John Kerndl and Top CEO Aide Say No! Fox isnt the only hospital executive looking to exploit the perception that the unvaccinated are responsible for wreaking havoc. Even more disconcerting: Beaumont chairwoman Julie Fream will serve as chairwoman if the companies merge. The only remaining senior management executives are Grant, the chief nursing officer, and Jane Jordan, the chief lawyer, who like Grant and CEO Fox, has her primary home in Atlanta. 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 writer, a Los Angeles freelancer, is a former Detroit News business reporter who . According to one source, Beaumont at least until recently had more than 3,000 job openings. Spectrum, with $6.9 billion in revenues, operates 14 hospitals in the western side of the stateand has 30,000 employees. 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. Henry Ford Hospital announced this week that it was closing 120 inpatient beds systemwide due to staffing shortages. The metric that matters most is quality of patient care. Beaumont CFO John Kerndl Resigns, Beaumont Nurse Anesthetists Union Drive Could Save Imploding Hospital from Further Demise, Layoffs. 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. Starkman: Beaumont's FU to Metro Detroit and its Covid-19 Workers Tweet. I dont see any value in this merger, Freed says of the marriage deal Spectrum and Beaumont jointly announced last week. A responsible board would have fired Fox months ago and brought in an interim CEO with strong ties to southeastern Michigan to try and stabilize the place. 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. However, Beaumont Royal Oak is one of the busiest surgical centers in the country. Beaumont Troy also operates at a reduced capacity. 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. 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. We talk with many of them, Joanne Giardini-Russell, a Brighton Medicare consultant posted on Freeds LinkedIn page. Freese Decker this week toured Beaumont Troy Hospital, and notably neither Fox nor COO Carolyn Wilson were in tow. 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. That resulted in Beaumont staff nurses working alongside nurses getting paid considerably more money doing the same job, prompting more staff nurses to leave. Beaumont spent nearly $2 million on union busters when nurses at the Royal Oak hospital attempted to organize in 2019. Share. Beaumont employees and vendors are encouraged to reach out, with confidentiality assured. Hospital plans are designed to incentivize doctors not to order or recommend expensive procedures in order to reduce payouts. This columnist, a Los Angeles freelancer, is a former Detroit News business reporter who blogs atStarkman Approved. Instead, they allowed Spectrum to acquire Beaumont, creating Michigans biggest hospital system, as well as the states biggest employer. Support our reporting and commentary by becoming a Deadline Detroit member for as little as $3 per month. Those warnings are what led Congress to approve the financial largesse that Beaumont and other hospitals benefited from. As of this writing, Freeds letter received 40 likes and other shows of support, and not a single criticism. Moreover, rookie nurses still have a lot to learn. In his video, Fox was wearing a pinstripe suit jacket, not his trademark blue blazer. Starkman: Electric Vehicles and the Exploitation of Michigan Taxpayers. Freese Decker grabbed the brass ring, but it was badly tarnished. Eric Starkman of Los Angeles is a former Detroit News business reporter who blogs at Starkman Approved. 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