FORUM HEALTH | FINANCIAL CHALLENGES SOME OF THE MAJOR FINANCIAL CHALLENGES FACING FORUM HEALTH:

High-cost unionized employees: Forum Health spends an estimated $38 million more a year for its employees than if they were paid the wages, and subject to the work rules, at Forum's major competitor, Humility of Mary Health Partners, which is comparable in size to Forum.
Degradation of revenue: Decreasing reimbursements from Medicare, Medicaid, and workers' compensation, springing from a lowered wage index formula, combine to cost the health system $8 million to $10 million a year, compared with what Forum used to receive for treating the same number of patients.
Local economic conditions: There are more people without insurance or underinsured that show up at the hospital's emergency room needing services, but without the ability to pay for them. Forum provided uncompensated care -- charity and those who choose not to pay -- worth $45 million in calendar year 2005, compared with $40 million in 2004.
Free-market competition: Years ago, hospitals didn't have any competitors except other hospitals. Today, there are private, free-standing health care businesses siphoning business from the hospital.
Source: N. Kristopher Hoce, Forum Health president and CEO