FORUM HEALTH Union opposes lower wages, says concessions unnecessary

The SEIU urged community leaders to help find a solution for Forum's problems.
By WILLIAM K. ALCORN
VINDICATOR STAFF WRITER
YOUNGSTOWN -- The labor union representing 1,400 technical, service and maintenance workers at Forum Health opposes wage concessions as a solution for the health care system's financial problems.
In a statement Wednesday afternoon, Dave Regan, president of the Service Employees International Union, District 1199, said financial problems that "may or may not exist ... are not attributable to inappropriate levels of compensation for front-line caregivers."
"We also categorically reject the idea that any form of concessions are necessary," Regan said.
The stance by SEIU District 11, which represents some 27,000 health care and social service workers in Ohio, Kentucky and West Virginia, is just the opposite of that of Forum Health, which recently hired Wellspring Partners, a consulting firm, to effect a financial turnaround.
At Forum, District 11 represents seven employee units, with members working in areas that include the business office, financial management, radiology laboratory, dietary department, and professional staff, such as pharmacists and therapists, union officials said.
Competitive disadvantage
N. Kristopher Hoce, Forum president and chief executive officer, has said that Forum is at a competitive disadvantage with Humility of Mary Health Partners, its major competitor, because of higher salaries, and more relaxed work rules, for the same type of workers.
Regan said it is in the "best interest of the Youngstown community, as well as the patients served by Forum Health, to systematically examine all areas of Forum's business operations, including executive compensation, business systems and practices, and the hospital's position in the health care market."
"We believe Forum Health is too important to do otherwise," Regan said.
He urged business leaders, elected officials and citizens of good faith to "join us in forging a constructive solution to the issues that confront Forum, rather than repeating the mistakes of General Motors, Delphi and others who expect employees to bear the brunt of financial problems that are beyond their control."
Hoce also pointed to degradation of revenue, primarily caused by decreasing reimbursements from Medicare, Medicaid and workers' compensation, along with competition from private, free-standing health care businesses, that are siphoning business from the hospital, for Forum's financial problems.
Moody's Investors Service just last week reduced Forum's bond rating from Baa2 to Baa3, which means it will cost more for Forum to borrow money. Also, according to Moody's, Forum Health lost $21 million to $22 million in 2005.
alcorn@vindy.com