Forum studying bond status

Forum wants its lenders to give it more time to shape up its finances.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
YOUNGSTOWN -- Forum Health was considering its options Wednesday as it was on the verge of being declared in default on its bonds.
The medical provider could have been declared in default on loan agreements May 1, but bondholders gave it until the end of the month to shape up its finances.
Forum officials weren't commenting Wednesday on talks with bondholders, but the board of directors was to meet later in the day. Patty Kimerer, a hospital spokeswoman, said Forum officials would have no comment on the meeting until today.
A newsletter to employees said the board was to hear a review of the latest financial data and presentations on various options that Forum could take. Officials weren't sure if the board would make major decisions at the meeting, the newsletter said.
Dr. Keith Ghezzi, Forum's interim president and chief executive, wrote in the newsletter that Forum is current on bond payments, but bondholders are not satisfied with its overall financial position. The bond agreements require the hospital system to be financially healthy in addition to making payments.
What's being done
Forum has been trying to show bondholders that it is making progress in increasing revenues and cutting losses, which had been projected at $60 million this year.
"Thirty days is not enough time, but because of the progress we have shown so far, I believe that we may get a little breathing room," Dr. Ghezzi said.
Dr. Ghezzi said in early May that Forum could be forced to seek bankruptcy protection, while continuing to operate, or sell assets if it can't hold off the bondholders, who are owed $180 million.
Forum must focus on meeting the needs of physicians, providing superior patient care and operate more efficiently, he said.
Also, Forum has been trying to reach an agreement with its unions on contract changes.
Dr. Ghezzi has said a wage freeze and changes to benefits for nonunion employees will save $5 million a year, while similar concessions from union workers would save about $24 million a year.
shilling@vindy.com