Cordray says he’ll expedite Forum decision

By WILLIAM K. ALCORN

alcorn@vindy.com

YOUNGSTOWN

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Ohio Attorney General Richard Cordray

The state attorney general’s office says it will expedite its review of Ardent Health Services’ proposal to buy bankrupt Forum Health for $69.8 million and expects to have a decision within a few weeks.

But Ohio Attorney General Richard Cordray said during a press conference Thursday morning in his Youngstown office that Forum’s being in bankruptcy makes it a relatively rare situation and complicates matters.

Normally, Cordray said, the decision of his office to approve or reject a proposal involving a nonprofit is final. Though federal law provides for state law to be respected, in this case, his decision will be one of the factors at the disposal of U.S. Bankruptcy Judge Kay Woods in deciding the case.

Cordray said because Forum, as a nonprofit business, received tax and other breaks, the role of his office is to “stand in the shoes” of the people of the Mahoning Valley and ensure that issues such as access to health care and long-term employment and maintenance of its charitable mission are adequately addressed in the Ardent proposal.

Cordray said the same process would be followed with any subsequent proposals to purchase Forum that come forward.

Forum’s major components are Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland.

One of the key issues in the Forum case is what restrictions are placed on the use of public money donated to foundations of the Forum entities.

According to state law, the attorney general determines if the proposed transaction would result in a breach of fiduciary duty, including conflicts of interest; if Forum would receive full and fair market value for its charitable or social-welfare assets; and if the proceeds of the sale would be used consistent with the nonprofit health-care entity’s original charitable purpose.

Under law, the attorney general’s office has 60 days to complete its review. Cordray said, however, he expects to “wrap this up quickly” so as not to hold up the bankruptcy-court process.

He said the concerns of Forum’s creditors carry “little weight” with his office, but they do receive consideration through the court.