One by one, the parties interested in the Forum Health auction walked into the 5/3 Bank building in Cleveland, which houses Forum's law firm, Thursday morning.
But it wasn't until six hours later that anyone emerged.
Ironically, it was executives from the losing bidder.
"We built relationships with physicians, with employees, with community leaders, with elected officials, with union leaders, and we felt like we did everything the right way," said Kevin Gwin, Ardent's vice president of communications. "And unfortunately, it didn't go our way."
The bidding, which started at $70 million, ended with CHS agreeing to pay $120 million to take over Forum's assets, including Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland.
In addition, the deal includes $80 million in improvements over five years and a promise to meet the offers Ardent Health Services had made to Forum's major unions.
Ardent's spokesman called the auction process structured, but respectful.
"Whenever we officially came back with a bid, we were in the same room so everybody could hear and everything was clarified, and then we would adjourn again for the next group to make sure they understood the bid," said Gwin.
As for Ardent's last offer?
"I don't think it matters now," said Gwin. "We went back and forth and that's where it ended up."
A statement from CHS stated that their successful bid now paves the way for productive discussions with the unions that represent Forum Health’s employees. The release said that the company hopes it will "reach mutually acceptable agreements."
While the sale must still be approved by both the bankruptcy court and the Ohio Attorney General Richard Cordray, negotiations between CHS and Forum's unions could begin as soon as Friday.
The next step will be for Cordray to review the company's offer. Cordray said it will be subject to the same review process that Ardent underwent, which could take about seven weeks. The sale must also be approved by U.S. Bankruptcy Judge Kay Woods.
CHS's statement further read: "We have assembled the necessary materials for submission, and because this transaction mirrors the previous bidder's, other than the purchase price, we understand that the Attorney General will act expeditiously in his review."
Forum released its own statement Thursday.
"We are trying to get a good outcome for everyone with an interest in Forum Health," said Phil Dennison, board chair.
The auction started at 10 a.m. at the law offices of McDonald Hopkins LLC in Cleveland, who represents Forum. Media was banned from entering the elevator that goes to the 21st floor, where the offices are located.
The hearing in Federal Bankruptcy Court before Woods for finalization is on Aug. 10.
Cordray Monday put his stamp of approval on Ardent's bid for Forum. Ardent put an initial bid of $69.8 million on Forum, and vowed to invest between $50 and $70 million in the health system in the next five years.
Just a few hours after Cordray's announcement, CHS submitted its own bid for $100 million. In addition, CHS agreed to invest at least $80 million during the next five years.
Both companies have pledged to keep all of Forum's assets open.
Forum union members have expressed concern with CHS purchasing the system and have given their support to Ardent. In a statement from SEIU, hospital division director Rob Johnson said the union looks forward to a full review by Cordray of CHS's plan for the hospital system.
"The employees of Forum Health remain committed to sitting down and reaching an agreement with CHS that preserves quality care for the community," said the statement.
Since Forum Health was a nonprofit entity, the attorney general's office would have to approve the sale because both Ardent and CHS are for-profit companies, meaning Forum would lose its nonprofit status. Cordray's responsibility is to keep the community's best interest in mind.
Forum Health in March 2009 filed for Chapter 11 bankruptcy protection. Its facilities include Northside Medical Center, Austintown Ambulatory, Trumbull Memorial Hospital and Hillside Rehabilitation Hospital.
