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Union heads seek stimulus funding for Forum Health
YOUNGSTOWN — Forum Health union leaders and local elected officials are making a last-ditch attempt to get federal-stimulus money for the financially troubled health-care system.
They are working in the face of the Monday deadline when a crucial decision is to be made on whether Forum will continue along the path of stand-alone reorganization or be sold at auction.
“We’ll gladly go to Columbus if that is what is needed. The aim is to get all the players in the same room this week,” said Eric Williams, president of the Youngstown General Duty Nurse Association.
Williams said he has reached out to Gov. Ted Strickland’s office because “he is the one who has to have conversations with the federal government” regarding stimulus money.
A spokesman for Strickland’s office said the governor understands the time element involved and is willing to pursue whatever is possible, Williams said.
Though time is short, Williams said he feels better about Forum’s survival than he did a few months ago.
“Anything is possible. There are more oars in the water, although I would have liked to see that happen sooner,” he said.
Also, Williams said, Northside, where his union represents between 450 and 500 registered nurses, is at the “make-money point” for November. Because of this, the creditors have nothing to lose and everything to gain by delaying a sale, he said.
“We’re not burning any of their money,” he said.
Williams said he remains hopeful there will be a positive resolution to Forum’s financial problems.
“We lean toward reorganization because it provides jobs and access for at least the next three years according to the plan developed. We didn’t have that option a year ago,” Williams said.
He said the federal funds they are trying to tap are stimulus (American Recovery and Reinvestment Act of 2009) and TARP (Troubled Asset Relief Program) money.
TARP gave the U.S. Treasury $700 billion to buy up mortgage-backed securities from institutions across the country in an attempt to create liquidity and un-seize the money market. The stimulus program set aside about $10 billion for National Institutes of Health, most of which was to be awarded to research grants that would stimulate the economy, create or retain jobs and make scientific progress in two years.
There ought to be some way that TARP funds can be used to maintain jobs and access to health care, Williams said. What local officials are looking at is using the money as collateral for Forum to refinance its debt, he said.
That is the initiative Youngstown Mayor Jay Williams is pushing, said Eric Williams.
Bids to buy Forum Health were submitted by Nov. 13, and it is expected that Forum officials, in concert with the health-care system’s creditors, will decide Monday whether Forum will continue its reorganization efforts or be sold. Forum refused to disclose the identity of the bidders.
Forum filed for protection under Chapter 11 of the U.S. Bankruptcy Code on March 16. Its major facilities are Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland.
alcorn@vindy.com