Reports: Finances improve

Forum has increased its revenues in March and April, a newsletter says.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
YOUNGSTOWN -- Forum Health says it is making progress in digging its way out of its financial hole.
Financial reports for March showed increased revenues and an improved billing and collections process, while preliminary numbers for April show these trends continuing, Forum said in an employee newsletter this week.
Dr. Keith Ghezzi, interim president and chief executive, could not be reached to comment. Patty Kimerer, a hospital spokeswoman, said a presentation to the press is being planned.
Forum has projected a $60 million loss this year and has said it needs $25 million in concessions from union employees in order to survive.
Dr. Ghezzi said in the newsletter that the "hard work of establishing more productive, collaborative relationships with the unions" has begun. The goal is to identify shared objectives in order to save as many jobs as possible, he said.
Forum also has been studying a wide range of other steps to cut costs and increase revenues.
Dr. Ghezzi said Forum has made progress in negotiating new contracts with vendors and suppliers, eliminating waste and duplication and reducing staff. The corporate structure has been realigned to reduce overhead costs and better focus resources to support patient care, he said.
What was done
Officials said last month that they were implementing improvements that would add $24 million to Forum's bottom line.
Among the steps announced last month were to explore the restructuring of Tod Children's Hospital in Youngstown and the downsizing or closing of Behavioral Medicine services unless a strategic partnership or sale can be secured.
The newsletter mentions these areas where cost savings have been achieved: pharmacy, $2.3 million; contract services, $1.6 million; medical-surgical floors, $790,000; supplies, $576,000; laboratory, $242,000; and nutrition, $263,000. Forum has gained $2.5 million in improvements to managed-care contracts and more than $4 million in other revenue enhancements.
Forum's network of health-care facilities in the Mahoning Valley includes Northside Medical Center in Youngstown and Trumbull Memorial Hospital in Warren.
shilling@vindy.com