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CHS’ $120M bid wins Forum nod
By WILLIAM K. ALCORN
CLEVELAND
Community Health Systems’ bid of $120 million was enough to make it the new owner of Forum Health, subject to approval by the Ohio attorney general and U.S. Bankruptcy Court.
Youngstown Ohio Hospital Co., a subsidiary of Community Health, the nation’s largest publicly traded hospital company, was chosen by Forum Health as its new owner during an auction Thursday in Cleveland at the offices of McDonald Hopkins, one of the law firms representing Forum.
Ardent Health Services, the only other qualified bidder, was determined to be the backup bidder, according to a written Forum statement. Ardent’s bid going into the auction was $69.8 million, and CHS’ initial bid was $100 million.
In accordance with procedures established by the bankruptcy court, Forum Health said it will seek approval of the auction outcome at a sale hearing scheduled for 9:30 a.m. Tuesday before Judge Kay Woods.
“We are trying to get a good outcome for everyone with an interest in Forum Health,” said Phillip Dennison, Forum board chairman.
If the sale is approved, Community Health Systems would purchase the hospitals — Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland — and all of Forum Health’s other operating assets for $120 million in cash and also assume certain liabilities, including the payment of a breakup fee and various expenses to Ardent Health Services, Forum said.
“We are very pleased that our sale process resulted in this outcome for Forum Health, our creditors, our employees and the community,” said Dennison. “From the very beginning, our goal through the bankruptcy process was to provide a more secure and stable future for Forum Health and continued access to high-quality health-care services for residents of the Mahoning Valley.”
Community Health announced earlier this week that it is committed to maintaining all three hospitals as vital community resources and to offering employment to all employees in good standing and actively working for Forum at the time of the sale closing, Forum officials said.
The company also has committed to invest at least $80 million over the next five years to fund facility improvements, technology upgrades, physician recruitment and service enhancements, continue participating in the Medicare and Medicaid programs, and providing a charity-care policy.
Dennison said Forum would have briefing meetings with union leadership today to explain the terms of the sales agreement.
Dennison said CHS is expected to conclude its negotiations with Forum’s unions before the sale. At a minimum, CHS has offered to the unions the exact terms and conditions as previously negotiated between Ardent and labor, he added.
Rob Johnson, hospital division director for the Service Employees International Union District 1199, which represents Forum’s service workers, said the union hopes to meet with the company.
“The employees of Forum Health remain committed to sitting down and reaching an agreement with CHS that preserves quality care for the community,” Johnson said.
Tomi Galin, a Community Health spokeswoman, said her firm is “very pleased” to have been the successful bidder and now will submit its proposal to the Ohio Attorney General’s Office for his review.
“We have assembled the necessary materials for submission, and because this transaction mirrors the previous bidder’s, other than the purchase price, we understand that the attorney general will act expeditiously in his review,” Galin said.
Also, she said, the successful bid paves the way for productive discussions with the unions that represent Forum Health’s employees.
“We continue to hope we will reach mutually acceptable agreements,” Galin said. “Most importantly, we are excited about the opportunity to work with the medical staffs and employees of Forum Health to build strong and successful hospitals that will continue to provide quality care for residents of the Mahoning Valley.”
At the sale hearing, Judge Woods is expected to determine if the parties have adhered to bankruptcy law and the sale and bidding procedures established by the court in June. She also likely will resolve pending objections or new objections to the sale, which must be filed by 8 a.m. Monday.