Ghezzi remark irks union chief

SEIU says that if Forum was not paying millions in consulting fees it would be in the black.
By WILLIAM K. ALCORN
VINDICATOR STAFF WRITER
YOUNGSTOWN -- The game being played between Forum Health and the union is more like "blind man's bluff than chicken," said David Regan, president of District 1199 of the Service Employees International Union.
Regan's comment Wednesday came in response to a statement made by Dr. Keith Ghezzi, Forum's interim president and chief executive officer, in this week's edition of Forum Flash, a newsletter published by the health-care organization.
Dr. Ghezzi characterized SEIU's position in talks with Forum as "tantamount to playing chicken, as when two vehicles drive toward each other as fast as possible to test who will be the first to steer away and avoid a collision."
But Regan said that because Forum wants the union to accept massive concessions without providing basic financial and other information requested by the union, the game is more like blind man's bluff than chicken.
Regan is critical of Dr. Ghezzi's depiction of the situation.
"Just two weeks ago, SEIU District 1199 participated in a with Forum Health's administration that was both helpful and informative. Leaving the meeting, both sides recognized that there was work to do to find a joint solution for Forum's problems and agreed to meet again to continue our work.
"Frankly, because we at SEIU would like to resume that conversation, we are a bit disappointed by the less than constructive rhetoric displayed by Dr. Ghezzi in this week's Forum Flash," Regan said.
Money troubles
Despite successes in collecting $575,000 in unpaid bills during the past two months, and making improvements in payer contracts that Forum projects will net an increase of at least $2 million a year, Dr. Ghezzi continues to insist that $24 million in concessions from its union employees is still needed to avoid possible bankruptcy.
Regan said that over the past six months SEIU has "consistently and repeatedly" said it is committed to working with Forum Health to find a solution that sustains vital medical services to the community, preserves quality jobs and creates a hospital system that is financially viable long into the future.
"All we have ever asked for, and continue to ask for, is the basic financial information that we believe any organization would require when participating in these kinds of discussions. For some reason, Forum continues to balk at providing it," Regan said.
Regan said that when Forum's just-released financial figures for April are added to the figures previously released for March, it is clear that if the fees Forum is paying to consulting firms, which SEIU estimates at $20 million to $25 million, are backed out of the equation, Forum Health is now actually turning a profit.
But Dr. Ghezzi said in the newsletter that Forum's bondholders, who are owed $180 million, said their cooperation in not forcing Forum into bankruptcy is dependent on Forum securing labor concessions.
Projections and results
Earlier in the year, Forum projected losses of $60 million in 2006.
However, Regan said Forum itself in May "trumpeted" savings that SEIU thinks will result in at least $13 million less than the original $60 million. Given that, Regan asked why the level of concessions demanded has not been reduced proportionately.
Regan said the questions they are seeking answers to include employment levels that Forum foresees at the system's various hospitals; what medical services will be provided and at which facilities; Forum's latest revenue and loss projections for 2006; and Forum's projection regarding the consulting fee amounts it anticipates paying in 2006.
"Unless and until Forum provides us with answers to questions like these, it is impossible to intelligently address the question of concessions," Regan said.
"We remain willing to cooperate with Forum Health. But, cooperation is a two-way street. And for future discussions to be fair, neither side can be at an information disadvantage," Regan said.
alcorn@vindy.com