Details were released Tuesday afternoon on Tennessee-based Community Health Systems' bid for Forum Health. According to a release from CHS, the bid submitted Monday was in the amount of $100 million "demonstrating our sincere and serious desire to purchase the health system."
CHS said in its statement that if its bid is successful it would be committed to:
- Maintaining all three of Forum's hospitals: Northside Medical in Youngstown, Trumbull Memorial in Warren and Hillside Rehabilitation Hospital in Howland;
- Investing at least $80 million in five years;
- Continuing to participate in Medicare/Medicaid programs and provide a charity care policy;
- And offering employment to all employees in good standing and actively working for Forum Health at the time of the closing.
According to the release, if CHS's bid is successful, it will establish wholly-owned subsidiaries to complete the purchase of each hospital and to operate in the Youngstown and Warren area.
The release said discussions with Forum unions is ongoing.
"Moving forward, we are excited to participate in this process, and we are hopeful that we will have the opportunity to work with the outstanding medical staffs and employees of Forum Health in their continuing efforts to advance high-quality health care for the people of the Mahoning Valley," the release states.
Forum issued a response release Tuesday evening, stating that CHS's bid was a "qualifying bid." Accordingly, Forum will consider CHS's bid, as well as a bid from Ardent Health Services.
Ardent, also of Tennessee, bid almost $70 million in June. Ohio Attorney General Richard Cordray approved that bid just Monday and said the sale would be in Forum's best interest. Ardent is a for-profit business which owns hospitals in New Mexico and Oklahoma.
Ardent officials have said if its bid is successful, it would:
- Invest as much as $70 million in needed improvements at the system's three facilities;
- Promised the local community would not see a noticeable change in patient care;
- Keep all three hospitals open.
Representatives from AFSCME, the SEIU and the Ohio Nurses Association Monday held a press conference during which they said they were pleased with Ardent. However, they said CHS had not been open with details about its plans, hadn't answered labor questions and has a bad reputation in other communities where its purchased hospitals.
One concern was that CHS would establish subsidiaries to complete the purchases if its bid is successful and that it would discontinue or reduce charity care services.
Now, Forum's creditors and debtors must decide which company proposed the highest and best offer.
Bankruptcy lawyer David Engler said numerous factors, beyond the money, need to be considered before a proposal is submitted to Judge Kay Woods for final approval.
"You could have a situation where one of the bidders couldn't ultimately perform and the creditors say we don't think we'll get our long-term value out of this," Engler said.
Engler said -- before CHS's bid details were known Tuesday -- that because of Ardent's due diligence up to this point, that company may have the upper hand. If CHS makes it out of Thursday's auction as the highest and best bidder, the company still must receive the approval of Cordray before the sale is final.
"It's in anybody's interest to give us notice as soon as they can because if they want us to proceed with our review, the sooner we get started, the sooner it moves along," Cordray said.
Once the auction is complete, interested parties have until Aug. 9 to object to the sale in federal bankruptcy court.
