YOUNGSTOWN Forum Health to lay off about 55 workers

Layoffs will affect about 1 percent of the Forum Health work force.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
YOUNGSTOWN -- Citing skyrocketing malpractice insurance costs and dropping investment revenue, Forum Health is making plans to lay off about 55 employees to cut costs.
Brian Dietz, who took over in September as the health-care company's executive vice president and chief operating officer, called the plan a "network-wide work force reduction."
"We need to match our operating costs with our revenue level," Dietz said. "It will not be uncommon for us to hire and lay off as needed continually throughout the year. That is a responsible way to manage an organization."
Jo Anne McCliment, a Forum spokeswoman, said the company would not release details Tuesday on what job classifications will be affected by the layoffs or when the cuts will be made because employees had not yet been notified. The plans will affect about 1 percent of the company's 5,500 workers.
Management employees were informed of the furlough plans last week, she said.
McCliment also would not say whether the layoffs will include medical personnel. She said none of Forum's services or operations will be curtailed because of the layoffs.
Investment income down
In good economic times, McCliment explained, Forum has used investment proceeds to keep its retirement pension accounts fully funded. Recent stock market declines have cut earnings so deeply, however, that Forum has been forced to draw on its regular operating income to maintain the pension fund.
"Besides that, our malpractice insurance costs are enormous," McCliment said. "It's a nationwide problem, not just here."
Dietz said Forum had to adjust its operating costs to maintain financial viability, and about 60 percent of the company's operating costs are related to manpower. "Regulating this is more of an art than a science," he said.
Dietz came to Forum from Magellan Management Corp. in Indianapolis, a hospital consulting company specializing in interim management, turnarounds and strategic planning, and before that he was executive vice president administrator at St. Joseph Regional Medical Center in Plymouth, Ind.
McCliment said the new COO was not brought in to cut staff. "It happened by default," she said.
Bill Padisak, executive vice president of District 1199, Service Employees International Union, said he was notified of the layoff plans last week. The union represents 1,500 Forum employees in 80 medical and non-medical job categories.
Seniority rights
Padisak said he hadn't been given specifics of the layoff plan but expects the cuts to be made in areas not related to patient care. Laid-off SEIU members will have the right to bump other employees with less seniority, he said, and they will have recall rights for two years.
Union officials representing registered nurses at Forum Health facilities said they have no knowledge of plans to lay off nurses. Joyce Shaffer, president of Youngstown General Duty Nurses Association, and Tom Connelly, president of United Nurses of America, both said they do not expect the company to furlough registered nurses.
Forum Health operates Northside Medical Center and Tod Children's Hospital in Youngstown, Trumbull Memorial Hospital in Warren, Hillside Rehabilitation Hospital in Howland and three medical parks.
vinarsky@vindy.com