Forum Health Letter From Dr. Ghezzi


To: Forum Health Community

From: Keith T. Ghezzi, M.D., Interim President and CEO

Re: Community Health Systems

As part of its ongoing commitment to address Forum Health’s financial challenges, the Forum Health Board of Trustees at its August 22 meeting authorized its management team to negotiate a definitive agreement with Community Health Systems (CHS) for the sale of Forum Health’s facilities.

Forum Health has entered into a non-binding Letter of Intent with a subsidiary of CHS, one of the nation’s premier operators of acute care hospitals, to acquire all of Forum’s healthcare operations. Under this Letter of Intent, the buyer would provide substantial resources and the investment capital necessary to upgrade Forum’s facilities, enhance services and preserve quality health care and choice for this community.

Forum Health’s Board of Trustees set forth the following principles and priorities that will guide Forum’s turnaround efforts going forward:

* A commitment to maintain an exemplary level of community health care and outreach.

* An investment in the community that takes into account the value of Forum’s assets and provides capital to expand and enhance Forum’s services.

* A responsibility to operate financially sound hospitals that are vital to the community’s health status and the economic development of the region.

* An aggressive effort to retain and continue to recruit skilled, dedicated primary care physicians and specialists to ensure the quality, patient-centered care.

* A philosophy that values employees and promotes professional growth and development.

* A partnership with the community that preserves local involvement while providing the necessary resources to expand services and enhance technology.

A Letter of Intent is the first step in an extensive process of exploration and evaluation to ensure that the terms of a definitive agreement are in the best interest of the community and Forum Health. Through its subsidiaries, Community Health Systems, headquartered in Tennessee, owns or operates 76 hospitals in 22 states. All CHS-affiliated hospitals work with a local governing board that has significant influence over hospital policies and operations.

Over the next several months, as negotiations continue, Forum will manage its facilities, maintain quality patient care and communicate regularly with employees, physicians and the community. In addition, Forum will pursue its ongoing comprehensive turnaround initiatives to improve revenues, enhance productivity and position the System for long-term viability.