Not long after his company submitted the prevailing bid in the auction of Forum Health Thursday, Community Health Systems President Tom Miller called Warren Mayor Michael O'Brien to deliver the news.
CHS had the winning bid over Ardent Health Services, a company that's been in contact with local unions, leaders and doctors since showing interest in the area's bankrupt health system early this year.
CHS had entered the picture months later, to the chagrin of union members wary of its unclear plans and reputation with other health systems it's purchased.
Now, as CHS's proposal moves under the microscope of Attorney General Richard Cordray and the bankruptcy court, both charged with approving the $120 million bid, leaders say the Valley will also be watching.
"(Miller) said he's looking forward to being a corporate citizen," said O'Brien. "I reminded him (Forum's Trumbull Memorial Hospital) is the city of Warren's largest employer."
Bidding Thursday for the bankrupt system -- which includes Trumbull Memorial Hospital in Warren, Hillside Rehabilitation Hospital in Howland and Northside Hospital in Youngstown -- began at $70 million.
In June, Ardent offered $70 million for Forum, with a promise to invest another $50 million to $70 million. It's promised to keep all three hospitals open and even negotiated new contracts with Forum unions. Monday, CHS submitted a bid for $100 million, with a promise to invest $80 million and to keep all three hospitals open. It has not negotiated with unions.
CHS said in a statement Thursday its overall plan mirrors Ardent's. And Miller told O'Brien he intends to mirror contracts negotiated with Ardent.
O'Brien said he wasn't surprised with the outcome of Thursday's auction. CHS is the largest publicly traded hospital company in the U.S., he said, and, as demonstrated by its initial bid, has a much deeper pocket.
While bigger isn't always better, Trumbull County Commissioner Paul Heltzel said that pocket might be a guarantee in keeping Forum's hospitals open.
"It's nice to have someone with financial wherewithal to come in and fix the problems," said Heltzel. "There was concern about the three hospitals continuing on, especially Northside, and I think having the financial resources CHS has, that will guarantee that."
Youngstown Mayor Jay Williams said Northside is far too important to the city of Youngstown and the Mahoning Valley to be seen as an expendable asset and that the livelihood of thousands of people are at stake. He also spoke to CHS officials Thursday.
"What they asked for was a fair opportunity to demonstrate their commitment to this community," he said. "I agree we owe them that. If they are genuine and diligent in their actions, then they will be welcomed with open arms, and we look forward to helping them in any appropriate matter."
It now could take up to seven weeks for CHS's bid and purchase proposal to be approved or disapproved by Cordray, charged with keeping the community's best interest in mind. It must also be reviewed by the bankruptcy court.
In the meantime, CHS is expected to soon begin meeting with local unions.
"I'm sure the attorney general will go through this with due diligence and will be certain that it is the right fit for the community," said O'Brien. "If they mirror Ardent's discussions during negotiations, it should be a workable arrangement."
Likewise, Heltzel said CHS has many unionized workers at its other facilities and believes it would work out fair deals with local employees.
"We're closer to the finality of this," said O'Brien. "This ... has been a rocky road, and through it all, the employees have really assisted in making it an attractive purchase because of concessions, numerous concessions by employees."
Williams said the Valley will make CHS accountable and will be watching as it moves forward.
"If there is any hidden agenda or ulterior motive, then the wrath of the Mahoning Valley will undoubtedly befall their lot," he said.
Forum Health in March 2009 filed for Chapter 11 bankruptcy protection.
