Forum seeks pay for Pishkur

By Don Shilling

Another battle with lenders looms unless Forum completes a restructuring plan soon.

YOUNGSTOWN — Forum Health is seeking to pay Walter “Buzz” Pishkur, its former chief executive, up to $9,000 a week as a consultant.

Forum has filed a motion in bankruptcy court that asks the matter be included in a previously scheduled Oct. 20 hearing.

Forum had discussed Pishkur’s proposed pay with its senior lenders, and they will not object to it, said Lance Ignon, a spokesman for the lenders.

Pishkur resigned last month as part of a deal with Forum’s lenders, but his compensation as a consultant would have to be approved by Judge Kay Woods.

Before the deal, Forum and its lenders were at odds over the future of the health-care system, particularly whether the financially troubled Northside Medical Center in Youngstown would remain open. Now, the two sides are working together on a reorganization plan.

Forum is proposing that Pishkur be a consultant to the next CEO until May 31 unless Forum sells all of its assets before that date. He also could be dismissed for cause or resign with 30 days’ notice.

Pishkur would be paid for reasonable out-of-pocket expenses but would not be eligible for a bonus.

Forum said that having Pishkur as a consultant would allow a new CEO to take over with minimal disruption to its operations. The motion said that Pishkur is intimately familiar with Forum’s operations and its recent cost-savings initiatives.

“The debtors cannot afford to lose the services of Mr. Pishkur outright,” the motion said.

It added that the consultant agreement is designed to reinforce non-compete clauses in Pishkur’s previous employment contract. Such agreements prevent an executive from working for a competitor for a certain length of time.

The motion said that Forum wants to be “secure in the knowledge” that Pishkur won’t divulge inside information about the organization or seek employment with a competitor.

Forum plans to name an interim CEO before beginning a search for a permanent CEO.

The motion said that Forum has reached a “critical juncture” in its bankruptcy case.

A negotiated plan of reorganization must be completed soon in order to avoid another dispute with the lenders over Forum’s use of its cash on hand, the motion said. In addition to Northside, Forum operates Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland.

Pishkur’s resignation last month was a key factor in settling a previous disagreement between Forum and the lenders.

The motion said that the lenders had lost confidence in Forum’s “senior-most management” and had wanted a trustee to be appointed to oversee the organization’s operations. The lenders had objected to Forum being given more time to file its own reorganization plan, objected to Forum continuing to use the cash it had on hand and had threatened to force the sale or closure of Northside.

The motion said that Forum did not agree with the lenders, but the board of directors accepted Pishkur’s resignation because it was concerned that a lengthy court battle would distract management from restructuring the business and would cause a decrease in admissions.

shilling@vindy.com