TMH likely to sell to proven company

If the sale goes through, Forum Health will have sold or closed three of its five major facilities.

By WILLIAM K. ALCORN

VINDICATOR STAFF WRITER

WARREN — The Forum Health Board of Trustees said it has signed a nonbinding letter of intent to sell Trumbull Memorial Hospital to Signature Hospital Corp. based in Houston.

The signing of a letter of intent is the beginning of an exploratory process in which both organizations conduct extensive research, known as due diligence. This process, which can take several weeks to several months, must be completed before any formal purchase offer is presented, Forum officials said.

If the sale is accomplished, Forum Health will have divested itself of three of its five major facilities.

Forum closed Tod Children’s Hospital in June 2007, and last week announced the sale of Beeghly Medical Park to Akron Children’s Hospital. Major facilities still on the market are Hillside Rehabilitation Hospital in Howland and Northside Medical Center in Youngstown.

If Forum and Signature Hospital Corp. are able to reach a definitive agreement, the transaction would be subject to approval by the Ohio state attorney general’s office.

Signature Hospital Corp. has a proven track record in enhancing patient care and safety in the community hospitals it owns and operates. It promotes local autonomy and broad decision-making latitude for its hospitals so that they can best serve the health-care needs of their communities, Forum officials said.

About the company

Signature owns community hospitals in Texas, Arkansas and West Virginia.

“Signature is a quality company committed to delivering quality community health care. We look forward to further exploring a potential purchase that will bring value to the entire Trumbull community,” said Thomas Hollern, Forum Health board chairman.

He said the Forum board considered several potential bidders in its efforts to identify a qualified purchaser able to invest in the hospital, bring a commitment to community health care, and enhance Trumbull Memorial’s reputation for quality care and service excellence.

Forum conducted employee meetings about the proposed sale at TMH on Wednesday.

Thomas Connelly, president of American Federation of State, County and Municipal Employees Local 2026, said Signature personnel were at TMH on Wednesday. Local 2026 represents registered nurses at the hospital.

“They [Signature] said they are interested in and looking forward to meeting with us in a couple of weeks,” Connelly said.

TMH is not the only hospital Signature is seeking to buy.

Web site

According to Signatures’ Web site, the company, founded in 2005, was chosen in July 2007 by the 138-bed Rockdale Medical Center in Rockdale County, Ga., to be that hospital’s buyer for $90 million. That is the first step of a public approval process that is expected to take several months, including the review and approval of the attorney general of Georgia.

Last spring, in May, Signature completed the purchase of St. Joseph Hospital in Parkersburg, W.Va.

According to its Web site, Signature is a privately held company that presently owns and operates four hospitals.