Officials watching hospital sale

The Warren mayor isn't concerned about the company's nonurban focus.
By DAVID SKOLNICK
VINDICATOR POLITICS WRITER
YOUNGSTOWN -- Youngstown Mayor Jay Williams expressed some reservations about the potential sale of Forum Health's health care operations to a subsidiary of a company that specializes in running nonurban hospitals.
On its Web site, Community Health Systems, the for-profit company that signed a nonbinding letter of intent to have Forum, a nonprofit organization, sell its operations to a subsidiary, touts itself as specializing in nonurban hospitals.
In the "About CHS" page on the company's Web site it states: "Nonurban hospitals are vital to keeping quality health care close to home. We understand the specific needs of hometown hospitals."
Williams said the Tennessee-based company's nonurban focus "raises some concerns and questions. I'd like to hear answers about how an urban hospital fits into their plans when they specialize in nonurban hospitals."
Among Forum Health's health-care facilities are the Northside Medical Center and Tod Children's Hospital on Youngstown's North Side.
Williams said a Forum Health official, whom he declined to name, contacted him today to discuss the potential sale of its properties.
"In that person's opinion, they felt CHS would bring the needed capital to invest in the community, and they have a history of running hospitals," he said.
Though concerned about CHS' focus on nonurban hospitals, Williams said he hopes "we end up retaining a full-service health-care system on the North Side of the city. I hope this is a commitment to remain in the community."
Williams said having CHS take over Forum Health's operations is better than other options such as Forum's filing for bankruptcy or closing its facilities.
"But I don't want to put too much stock in what this means until we get more information," he said.
What mayor said
Warren Mayor Michael O'Brien said he has no concerns about CHS' nonurban focus. Forum's Trumbull Memorial Hospital is in Warren.
"I feel they'll be able to ensure the quality health care we've enjoyed for years," he said. "Everything I've heard, it's a good company. I feel the company, as a rather large conglomerate, will have the capital to continue to be a state-of-the-art hospital."
If the sale goes through, CHS would pay Warren's 2 percent corporate tax on company profits. It can't do that with TMH because Forum is a nonprofit agency.
U.S. Rep. Tim Ryan, a Niles Democrat whose congressional district includes Youngstown and Warren, said he shares Williams' concerns about CHS' nonurban focus. But like the mayor, Ryan is willing to take a wait-and-see approach if the deal goes through.
"It's important for the facilities on Youngstown's North Side to stay there," Ryan said. "We need them to maintain a presence there. They think they can make it profitable. As long as the community is protected, people are receiving medical care and jobs are preserved, we'll do what we can to assist and support" CHS.
CHS is showing a willingness to invest and maintain Northside and Tod, and possibly expand Trumbull Memorial, Ryan said.
"It looks like a move in the right direction, but it's too early to tell," he said.
Through its subsidiaries, CHS owns or operates 76 hospitals in 22 states. None of the hospitals is in Ohio.
Boardman official
Robyn Gallitto, chairwoman of Boardman Township trustees, said the potential sale sounds, at least on the surface, like a good idea. Forum's Beeghly Medical Park is located in Boardman.
"Whoever occupies that real estate we hope stays in Boardman," she said. "I need to know more about this, but this sounds like a better alternative than closing."
Anthony Traficanti, chairman of the Mahoning County Board of Commissioners, first heard about the potential sale of Forum's properties from a newspaper reporter.
"I have to look at the details [of the proposal] to talk about it," he said. "It's a business decision. I don't know how it will impact the community."
Thomas Humphries, president of the Regional Chamber, reserved comment, wanting to first hear more about the plan before formulating an opinion.
skolnick@vindy.com