Forum may still 'win the game,' says CEO

Even if May is profitable, the company will still have to 'resize' its work force.
YOUNGSTOWN -- Forum Health is expecting positive news once all of May's financial results are in.
Dr. Keith T. Ghezzi, Forum's interim president and chief executive officer, also reported that the company's losses in April were smaller than those recorded in February and March.
Using the analogy of a football team in the midst of a season, Dr. Ghezzi told employees in the company newsletter Forum Flash that, "In April, we still lost, but we narrowed the gap considerably.
"Based upon volume and looking at some early numbers, I'm anticipating some promising financial results for May, which would be our second improved month after massive losses in the first quarter of 2006. We may win the game in May!"
Not over yet
However, Dr. Ghezzi cautioned employees that this success does not mean the company has turned the corner on its financial problems and will no longer need concessions from its unions in order to survive.
"If Forum's transformation effort was a football team, I'd say we are a third of the way through the season and showing some promise, but we have some tough games ahead of us," he said.
He said the company still needs to "resize" its work force and cut other expenses and eliminate waste.
Dr. Ghezzi noted that June, July and August are among the most difficult months for hospitals because of low admissions and increased costs because of staff vacations.
He also pointed out that Ed Muransky has announced that he will build the Valley General Hospital with or without Forum's participation.
If that happens, instead of a partner it would mean another competitor for Forum Health, Dr. Ghezzi said.
Earlier this year, Forum officials estimated the company's 2006 operating loss at $60 million, a figure union officials dispute.