Agreement resolves disputes with hospital

The settlement will prevent related claims or lawsuits.

By WILLIAM K. ALCORN

VINDICATOR STAFF WRITER

YOUNGSTOWN — The failed Valley Hospital Ventures project, a joint effort between Forum Health and local entrepreneur Ed Muransky, is now legally dead.

In a joint statement Friday, Forum, MHV Management (Muransky’s company), and Valley Hospital Ventures said they have reached an agreement resolving all disputes between them and dissolving their joint venture.

Valley Hospital was a joint venture created by Forum, MHV and some 114 local physicians.

Among other things, according to the statement, the agreement will end a pending lawsuit filed in May by Muransky against Forum and Dr. Keith Ghezzi, the hospital system’s interim president and chief executive officer.

The settlement also ensures that no future related claims or lawsuits will be filed, according to the statement.

In his suit, Muransky, owner of the Muransky Co. and Southwoods Surgery Center in Boardman, accused Forum and Dr. Ghezzi of breach of contract and fraud and sought monetary damages and dissolution of the joint venture.

At the time, Muransky described Forum’s handling of the Valley Hospital Ventures project as “mind-boggling." He did not respond to telephone calls made Friday to his publicist.

Background

At the time of the suit, Forum Health management said it had acted legally and ethically in all of its dealings with its partners in the Valley Hospital project and would “vigorously defend Forum against the complaint.”

Friday’s statement also reads: “MHV, Forum and Valley agreed that the interests of the Mahoning Valley were best served by each of the parties individually pursuing ways to deliver quality and affordable health care to the people of Mahoning County. The parties remain committed to providing such top quality health care.”

At the time of his lawsuit, Muransky said the Valley Hospital Ventures deal fell apart when Forum reneged on a handshake deal he made Jan. 3 with Dr. Ghezzi to buy Forum’s Beeghly Medical Park for $30 million as a site for Valley Hospital.

Dr. Ghezzi, who did not publicly comment on Muransky’s assertion of a handshake deal, said Forum did not sell its Beeghly Medical Park in Boardman to Muransky because his offer for the facility was below market value, which Wellspring Partners, Forum’s financial consultants, placed at $43 million.

At the time, Muransky called the failure of Valley Hospital Ventures a lost opportunity for the community as well as him personally. He said there was “an absolute opportunity to grow the health system,” thereby providing hundreds of jobs and preserving local health care.

alcorn@vindy.com