By WILLIAM K. ALCORN

By WILLIAM K. ALCORN
VINDICATOR STAFF WRITER
YOUNGSTOWN -- Forum Health went from an operating income loss of $8.5 million in February to a $1.5 million profit in May, a $10 million swing that has the financially troubled health care organization reassessing its earlier projected $60 million loss for the year.
"We are heartened by the turnaround and very proud of the employees' efforts," said Dr. Keith Ghezzi, president and chief executive officer.
Trumbull Memorial Hospital in Warren went from losing money to making money, and Northside Medical Center "came close" to profitability during the first five months of 2006, said Dr. Ghezzi at a news conference Wednesday.
However, summer is traditionally bad for the health care industry and cash flow will probably be down, said Doug Womer, Forum's chief financial officer.
Also, Womer said profits were partially achieved by putting off capital expenditures and cannot be sustained long-term.
From gloomy to hopeful
Earlier in the year, Forum was faced with some dire decisions, including selling pieces of Forum Health and closing Northside, the facility described as "our greatest challenge," said Dr. Ghezzi.
Instead, with improvements in collecting bills, buying supplies and other efficiencies, and the cooperation of the bondholders who are owed $180 million, Forum was able to keep Northside and Tod Children's Hospital operating, he said.
Womer said Forum managers were to meet today with Moody Investment Services, a bond rating company, to discuss the financial improvement.
Moody has lowered Forum's bond rating twice this year. But, Womer said, in view of the better financial performance, he doesn't anticipate any further downgrade at this point.
While the financial news is positive, Dr. Ghezzi said Forum has still lost $16 million through the first five months of 2006.
Further, he said General Motors' and Delphi Packard's plans to cut 4,000 jobs is another indicator of the Mahoning Valley's struggling economy. The loss of those 4,000 jobs represents the loss of an estimated 16,000 potential patients with insurance, he said.
For a successful financial turnaround, Dr. Ghezzi said a wage freeze and benefits concessions are needed from union-represented employees similar to those imposed on nonunion employees earlier in the year. Concessions include co-pays for health insurance, a switch from a defined benefits pension to a 401(k) system and changes in paid time-off policies.