Saturday, June 19, 2010
By WILLIAM K. ALCORN
YOUNGSTOWN
Gov. Ted Strickland has filed a motion urging the U.S. Bankruptcy Court to approve the sale of Forum Health, rather than its liquidation and closure.
In his friend-of-the-court motion filed Friday, the governor said the forced liquidation and closure would “likely cripple the economy of an area hit hard by the national recession.”
It also would “deprive Ohio residents of essential health-care services,” said Strickland, in asking the court to consider these effects when making its decision.
A friend of the court is someone who is not a party to the case, but who believes that the court’s decision may affect its interest.
In his motion, Strickland asked U.S. Bankruptcy Court Judge Kay Woods to approve such “fair and competitive bids,” such as that proffered by Ardent Health Services that “contemplate the continuation of Forum Health’s operations.”
Ardent has proposed buying Forum’s assets for $69.8 million and has pledged to keep all the hospitals open and invest an additional $50 million to $70 million over five years on renovations, new equipment and other upgrades.
Forum Health filed for Chapter 11 protection under the U.S. Bankruptcy Code on March 16, 2009. Its major assets are Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren, and Hillside Rehabilitation Hospital in Howland.
Additionally, Forum operates numerous health-care related businesses which, along with the hospitals, are a major employer in the area.
Further, the governor said, Forum Health provided about $21.1 million in charity to the poor and uninsured in 2008 and some $24.6 million in uncompensated care.
“The disappearance of Forum Health would deprive the residents of Northeast Ohio, already under economic duress, of viable health-care options,” he said.
Strickland said if the sale to Ardent is not approved and no other bidder steps in to continue Forum Health’s operations, the communities served by the health-care system will face severe economic hardships and health-care shortages.
In a related matter, a court hearing scheduled for 9:30 a.m. Tuesday is solely for the purpose of establishing sale procedures for Forum Health.
The hearing will not address the merits of the proposed sale, according to a statement by Forum Health.