Ohio's top lawyer said his staff has not finished its review of the sale of Forum Health's assets, but it's getting close, saying "if all goes well, we will be able to complete our review by mid-to-late September."
During a late morning press conference Friday, Ohio Attorney General Richard Cordray said his review of the purchase of Forum Health by Community Health Systems of Nashville, Tenn., is proceeding on schedule.
Cordray filed an Interim Status Report with the federal Bankruptcy Court in Youngstown Friday, indicating his staff is working to finish its state-mandated review more rapidly than is usual for cases like this. Earlier this month, Judge Kay Woods gave her own approval for Community Health Systems to buy Forum's assets for $120 million dollars.
Cordray said CHS has been cooperating with his staff, and has promised to continue providing charity care in the area.
In the filing with the bankruptcy court, Cordray wrote, "Thus far, all parties to the proposed transaction have been cooperative in providing information and documentation required for this review to the Attorney General. The Attorney General has now received all documents pursuant to his initial Request for Information and plans to follow up with both Debtor and Buyer for additional information as needed. Substantial progress in reviewing and analyzing the information provided has been made by the Attorney General's staff. Document review has been supplemented by individual interviews when needed and, in order to expedite the review process, a meeting has been scheduled with Community Health Systems representatives to resolve any remaining issues."
In a written statement, a CHS spokesperson said the corporation is working with Cordray's office and is pleased with the progress that's been made, adding CHS is committed to investing another $80 million dollars for needed improvements after the sale is completed. Cordray said his concerns go even further.
He said he wants to know "there is a commitment to the employees, who, after all, are critical to delivering health care."
The CHS statement indicated negotiations are being held with Forum's unions, calling those meetings "productive." Cordray said if he learns CHS isn't honoring its commitments, even after the sale, his staff will take action to pursue it.
Attorney General Cordray advised the court that the transaction review is currently on a timeline to be completed well within the 60 day statutory review period. Community Health Systems agreed 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.
Since Forum Health is a nonprofit entity, the attorney general's office has to approve the sale because 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.
