Strickland Pledges Support For Forum Health

Set Text Size SmallSet Text Size MediumSet Text Size LargeSet Text Size X-Large
Share
Updated: 12/10/2009 8:44 pm

In a stop in Youngstown Thursday, Governor Ted Strickland said he fully understands the importance of Forum Health in the area from his days as a member of Congress.

He also confirmed his support for efforts to keep Forum's assets intact and open. 

"I don't know that the governor can solve the problem, but the governor certainly can be, and should, and I intend to be a partner in those efforts," Strickland said.

Recently, Youngstown Mayor Jay Williams and Congressman Tim Ryan have been working to find federal funding to ease some of Forum's credit issues. Speaking by phone from Chicago, the mayor said Thursday he'd like to see unspent stimulus money used for loan guarantees or even outright federal grants to preserve jobs.

While Williams said he's hoping Strickland's involvement, as well as some help from the Obama administration, can keep the system's board from making any rash decisions about its future, Strickland admitted his experiences suggest the bankruptcy process gives a significant advantage to Forum's creditors. 

"Usually, the well-being of the employees and the impact upon the community, in my judgment, is not given adequate consideration," Strickland said.

Strickland said while he'll talk with anyone he thinks might be able to help the situation, he's also quick to admit he probably won't be making any calls directly to the White House looking for assistance.

Instead, he said, he and his staff may be able to make more headway talking with Washington staffers who may be in a better position to influence where federal money is spent.

Forum will head back to court next week.

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. Currently, the system, which employs about 3,400, is $133 million in debt. In court, there are three bidders for the entire system and one interested in Hillside only.




The following is text from a letter sent to President Barack Obama from U.S. Sen. Sherrod Brown and congressmen Tim Ryan, D-Niles, and Charlie Wilson, D-OH.

December 7, 2009


President Barack Obama
The White House
1600 Pennsylvania Ave.
Washington, DC 20500

Re: Forum Health, Youngstown, Ohio


Dear Mr. President:

As federal representatives for the Youngstown, Ohio region, we are requesting your assistance with a situation involving a local hospital system. Forum Health is a not-for-profit health care system that generates approximately $400 million in annual revenues with facilities in both Mahoning and Trumbull counties. Northside Medical Center is the largest employer in the city of Youngstown and a significant contributor to the local tax base. In total, the system employs approximately 3,400 employees at its facilities throughout the region, including Northside Medical Center, Austintown Ambulatory, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland.

Earlier this year, Forum Health filed for bankruptcy protection. Recent shifts in the medical industry, as well as the economic recession which has resulted in the loss of health insurance for thousands of Valley residents, has further eroded the institutions economic position. Currently, the company is $133 million in debt to secured creditors with estimated pension liabilities of around $100 million. There is currently a set aside of $43.2 million in the debt reserve fund. In the bankruptcy proceeding at this time, there are three viable bidders for the entire system plus one bidder interested only in the Hillside Rehabilitation Hospital facility. We are concerned that the creditors will opt to dismantle the system and liquidate the assets, resulting in thousands of employees losing their jobs in a community that already has a 12.5 percent unemployment rate.

We are particularly concerned about how the closing of any of the Forum facilities would impact health care locally, as well as the economic effect of such a closing. As the largest employer in the area, not only is Forum a crucial source of health care; it also has a significant impact on our local economy. An employer of Forum's size not only affects its own employees directly, but also its retirees and the thousands of other workers and businesses that offer the products and services within its supply chain.

While the local community is very supportive of Forum Health and their efforts to emerge from bankruptcy, the overall level of economic distress in the community has restricted its ability to assist in any meaningful way. Without the intervention of the federal government with a loan guarantee program or some other form of assistance, we believe that the system is in jeopardy of closing, resulting in a devastating loss of jobs and health care services.

We would ask for every possible consideration by the Administration to identify a program to assist with this situation. We are aware of a US Department of Agriculture program for rural communities that could serve as a model for distressed urban health care systems. We look forward to hearing from you on this critical community issue.

Thank you in advance for any assistance you can offer to our constituents.

U.S. Sen. Sherrod Brown
Congressman Tim Ryan
Congressman Charlie WIlson

C: Senate Majority Leader Harry Reid
Speaker Nancy Pelosi
Secretary Tim Geithner
Secretary Kathleen Sebelius

Share
0 Comment(s)
Comments: Show | Hide

Here are the most recent story comments.View All

No comments yet!
News Poll
Inergize Digital This site is hosted and managed by Inergize Digital.
Mobile advertising for this site is available on Local Ad Buy.