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Pishkur sets record straight on resignation
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MAKING A POINT: Walter “Buzz” Pishkur, former Forum Health CEO, explains why he resigned as CEO last month and has declined a $9,000-a-week consultant’s job for the health-care system.
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WE’RE NORTHSIDE FAMILY: Employees at Forum Health Northside Medical Center in Youngstown rally to protest layoffs at the hospital and their exclusion from the decision. “You don’t treat family like that,” said James Brown, right, a member of Service Employees International Union District 1199’s board of directors. Mary Ann Hupp, SEIU administrative organizer for Forum, left, said she hopes Forum’s new interim CEO “includes us in the planning.”
By WILLIAM K. ALCORN
VINDICATOR STAFF WRITER
Walter “Buzz” Pishkur said he resigned from a $9,000-a-week consulting job with Forum Health for much the same reason he quit as Forum’s CEO a month ago: pressure and interference by it creditors.
At a press conference Thursday, Pishkur said he was told by the health-care system’s creditors at a Sept. 15 hearing in U.S. Bankruptcy Court that if he did not resign as chief executive officer and president, the closure of Northside Medical Center would begin within two days and the money to pay employees and vendors would be withheld.
“I believe I stood in the way of their plans, and, therefore, they wanted me either out altogether or at least placed in a marginalized position that would make it impossible for the plans I put in place to be carried out,” he said.
Similarly, Pishkur said he originally accepted the consulting position offered by the Forum board of trustees thinking he would be in a position to further the reorganization plan developed under his leadership. The plan projected Forum’s three major hospitals would be financially viable in 2010 through 2012.
However, Pishkur said it became apparent that the creditors intended to return Forum Health to the leadership of an interim CEO employed by an out-of-town consulting firm and that his position as a consultant would be minimized.
Also, he said, in view of the compensation for the proposed interim CEO — $75,000 a month through Dec. 31 — and with layoffs and concessions impacting employees, the system could ill afford to pay $9,000 a week for a consultant who wasn’t being consulted.
At a rally Thursday afternoon, workers at Northside said they were happy with Pishkur’s announcement and hoped that the money saved could be used to bring back some of the 52 employees who are to be laid off at Northside.
Also, seven employees at TMH have received layoff notices, according to Deborah Bindas, American Federation of State, County and Municipal Employees union spokeswoman.
Reading from prepared comments, Pishkur said the stated reasons the lenders called for his resignation was that they had “lost confidence in him” and that he “had no health-care experience.”
“I believe the reality is that the lenders wish to walk away from Forum Health and our community,” he said.
After his comments, in an hourlong discussion with the media, Pishkur said he wanted to “set the record straight” about events leading up to his hiring and resigning as CEO.
He became a member of the Forum board in May 2005, was named its chairman in May 2008 and was hired as Forum’s CEO in October 2008, resigning a year later.
As a board member, he asked that the organization’s CEO be a local resident and said that he was proud that within three months after his taking the helm, the running of the hospitals was restored to local control.
Other benchmarks during the 12 months were concession contracts with all nine of Forum’s labor unions and its nonunion employees that are projected to save the health-care system $39.1 million over three years; and moving the employee pension to the federal Pension Benefit Guaranty Corp., which when accepted, will save an additional $64 million over the same three years. He said the company’s debt was reduced from $179 million to $139 million and there is $55 million in a debt-reserve fund.
He said it was always his goal to keep Forum Health intact.
Forum’s major facilities are Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland.
Pishkur said he is grateful to the employees for their support and contributions and urged the community to come together and support Forum Health.
“It’s a great organization and deserves support,” he said.
“I absolutely sympathize with the employees who are losing their jobs and income. That is another reason I declined the consulting job,” he said.
Northside has had the most difficulty making money, but Pishkur said experts have told him that Northside’s success is very important to the success of Forum’s other facilities.
“If it [Northside] can’t be successful, it can’t. But if it can, why not?” he asked.
Eric Williams, president of the Ohio Nurses Association/Youngstown General Duty Nurses Association, also speaking at Pishkur’s press conference, said Forum had been making progress under Pishkur’s leadership. Under previous leadership, admissions declined and assets were sold.
“We have very high expectations of the new leadership. If they are getting big bucks, they’d better perform,” said Williams, whose organization represents between 450 and 500 registered nurses at Northside.
Williams said he thinks the lenders are exercising undue control over Forum Health and that nurses at Northside support keeping health-care options in the Mahoning Valley and not the closing of any of Forum’s facilities.
“The loss of a thousand jobs is not in the best interest of the community,” he said.
The rally at 4 p.m. Thursday near Northside was sponsored by Service Employees International Union District 1199, which represents about 1,200 Forum employees. Twenty-two of its members, 21 at Northside and one at TMH, are among those to be laid off.
In addition to high compensation for executives, James Brown, a member of the SEIU executive board, said he is concerned about the continued loss of jobs through attrition and combining of responsibilities.
“We consider ourselves part of the Forum family, and you don’t treat family like this and not let us in on the discussions about layoffs,” said Brown, who works in the hospital’s materials-services department.
“We have hope the new CEO will have fresh ideas and include us in future planning,” said Mary Ann Hupp, SEIU administrative organizer for Forum.
“I think we need to let the public know about the high quality of care that is still here and will always be here, said Mary Ann Lloyd, a member of the SEIU Executive board who works in Northside’s birthing center.
“Our message has been consistent,” said Anthony Caldwell, SEIU spokesman. “We’re concerned about a fair day’s pay for a fair day’s work and providing quality health care,” he said.
alcorn@vindy.com