Union says finance uptick merits concessions review

SEUI says Forum's first-quarter loss equals the consultants' fees.
By WILLIAM K. ALCORN
VINDICATOR STAFF WRITER
YOUNGSTOWN -- Union officials say Forum Health should re-evaluate its demand for employee concessions in light of the financial good news the health care system revealed this week.
Dr. Keith Ghezzi, Forum president and chief executive officer, said Wednesday the company went from losing $8.5 million in February to making $1.5 million in May, a $10 million turnaround.
While it is pleased that Forum is showing financial improvement, Service Employees Union International District 1199, which represents about 1,400 of Forum's 5,000 employees, wants the company to re-examine earlier calls for union concessions, which SEIU says would total $24 million a year.
For several months, Forum has projected $60 million in losses in 2006. Doug Womer, its chief financial officer, said Wednesday that that figure was being reassessed based on the new financial data.
Call for transparency
In addition to wanting both the estimated annual losses and the amount of the concessions from union employees lowered, SEIU is asking for a public discourse on the $15 million the union says Forum has paid to consulting firms over the past several months, said Jennifer Farmer, SEIU spokeswoman.
Forum hired Wellspring Partners to lead restructuring of the hospital system that the company's board of trustees has said is necessary for survival.
Earlier in the year, Forum imposed concessions on nonunion employees, including freezing the defined pension plan and replacing it with a 401(k) plan, as well as instituting co-pays for health insurance and changes in paid time-off policies. Dr. Ghezzi has said the same concessions are needed from union employees.
It is inappropriate for the hospital system to report a $15 million loss during the first quarter of 2006 without also talking about the money paid to consultants, Farmer said.
"If we extrapolate consulting fees, what is the true financial condition of the hospital?" Farmer said.
At this point, she said, it would be helpful for Forum to offer straightforward information on when the consultants will leave.
alcorn@vindy.com