Tennessee company eyes TMH, Hillside

Forum Health remains in talks with many parties interested in buying the health care system’s
facilities.

WARREN — A Tennessee-based health-care organization is exploring the purchase of two Forum Health facilities in Trumbull County — Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland.

Brim Healthcare of Brentwood, Tenn., is involved in discussions with Forum Health about the purchase of TMH and Hillside, and Brim representatives are expected to visit the facilities within the next few weeks, said Trish Hrina, Forum spokeswoman.

Hrina emphasized that there is no purchase agreement in place and no letter of intent has been signed between the two companies.

At this point, Brim and Forum are in the due diligence stage, Hrina said. Due diligence is a process where a potential buyer investigates things such as demographics and the local market to determine if it wants to move forward with a purchase.

Brim is interested in buying TMH and Hillside because “we see potential” in those facilities, said Brim spokeswoman, Eve Hutcherson.

Brim would not be exploring this opportunity if it thought it would be a short-term relationship, said Hutcherson, when asked if Brim was interested in buying the facilities or managing them for Forum or another owner.

“If it happens, it would be a purchase. I think the fact that Brim has been in the health-care business for a long time speaks to its stability in the market place,” Hutcherson added.

According to Brim’s Web site, the company was formed in 1971 as a health-care hospital operating company focusing on community hospitals. In addition to managing hospitals for nonprofit organizations, Brim also leases or acquires community hospitals in selected circumstances, and offers short-term, intensive turnaround services for hospitals that require immediate financial restructuring.

Previously, in mid-September, the Forum Board of Trustees signed a nonbinding letter of intent to sell Trumbull Memorial to Signature Hospital Corp., based in Houston. Signature subsequently backed out of the deal, however, citing demographics and the weakness of the local economy as reasons for withdrawing.

Hrina said Forum remains in discussions with many parties interested in buying the health care system’s facilities.

In February, Forum hired Cain Bros., a New York City financial advisory firm, to help it sell its facilities. At the time, Dr. Keith Ghezzi, Forum president and chief executive officer, described Cain Bros. as a firm that specializes in advising nonprofit clients on mergers, acquisitions, restructuring and valuations.

Since then, the Forum board has closed Tod Children’s Hospital in Youngstown; sold the 140-bed Beeghly Oaks long-term care facility in Boardman; and sold Beeghly Medical Park in Boardman to Akron Children’s Hospital for $26 million. The Ohio Attorney General recently approved the deal with Akron Children’s.

alcorn@vindy.com