Forum Health drops sale plans

Forum says its turnaround efforts have been a success.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

Forum Health has suspended its attempt to sell its hospitals and rehabilitation center and plans to invest in them as ongoing operations.

Instead of focusing on a sale, Forum will work to establish a management team to run the operations, Dr. Keith Ghezzi, president and chief executive, said in a memo to employees.

Dr. Ghezzi credited Forum’s success in turnaround efforts. Forum has said that operating changes in the past two years have turned the organization from a money-loser to one that’s posting operating profits last year and this year.

Recent changes have produced $47.7 million in savings and revenue enhancements. Forum said recently that it had $16.6 million in operating profit through the first 10 months of this year.

Forum operates Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Center in Howland.

Forum has sold its Beeghly Oaks long-term care facility and Beeghly Medical Park. It also announced recently that it was considering selling TMH and Hillside to a Tennessee firm.

Trish Hrina, a Forum spokeswoman, said Dr. Ghezzi isn’t commenting beyond the memo, which was given to employees Wednesday.

Though sale efforts have been suspended, Forum is open to partnerships or affiliations that would bring investments to its facilities, Dr. Ghezzi said. Forum also will continue to work with its lenders to find “new ways” to support its operations and invest in its hospitals and programs, he said.

He also noted that Forum must continue to find ways to operate efficiently. Forum will focus on its core services but it also “must be willing to take a fresh look at every aspect of our work and determine where we succeed and where we can do better.”

He said the new management team would be led by Kevin Spiegel, who is president and chief operating officer of TMH.

Dr. Ghezzi also said that Tom Hollern resigned as Forum board chairman. Hollern, former area president of National City Bank, has moved from Canfield to Columbus to be near to family.

“Mr. Hollern has been a fierce advocate and unflinching in his support of Forum’s mission in this community,” Dr. Ghezzi said.

He said the board will choose a new chairman after the holidays.

Forum is closing its services at Beeghly Medical Park next Friday. Akron Children’s Hospital bought the Boardman center and plans to create a pediatric hospital there.

Forum will open its labor and delivery services at Northside at 7 a.m. next Friday. Its emergency department and diagnostic services at Beeghly will close at 11 p.m. that day.

shilling@vindy.com