Forum union responds to hiring of NYC firm
YOUNGSTOWN — The Forum Health Board of Trustees’ hiring of a New York City financial advisory firm to help it determine alternatives for the immediate future produced a call from an employees’ union for more community involvement in the board’s decision making.
Alternatives could include sales, mergers or joint ventures. The process is just beginning, and the trustees will continue to assess the board’s its alternatives during the next two months, Dr. Keith T. Ghezzi, interim president and chief executive officer, said today in a memorandum distributed to the Forum Health community.
The trustees on Tuesday hired Cain Brothers, a firm which Dr. Ghezzi said focuses on the health care and medical services industry and specializes in advising nonprofit clients on mergers, acquisitions, restructuring and valuations.
Dr. Ghezzi said because Forum lost slightly more than $20 million in 2006 and projects greater losses in 2007 and 2008, the health-care system’s lenders are tightening their scrutiny of its operations.
“We cannot compete without access to capital to invest in our hospital facilities and medical technology. Each Forum facility has an obligation to balance its books. ... Trumbull Memorial Hospital [in Warren] cannot continue to bear the full burden of the system’s debts and financial losses.''
For full story, see Thursday's Vindicator and Vindy.com.