Forum seeks Neumann as interim CEO

‘A leadership void would do maximum damage,’ Forum Health says.

By Peter H. Milliken

YOUNGSTOWN — Forum Health and its debtors have asked U.S. Bankruptcy Judge Kay Woods to approve the appointment of Charles W. Neumann as interim chief executive officer of the hospital system.

Neumann has more than 30 years of health-care business and management experience, including turnaround management, organizational redesign, operations management and strategic planning, Forum said in a press release Thursday.

Most recently, Neumann was interim CEO of Memorial University Medical Center in Savannah, Ga. Previously, he was senior vice president of operations for Bon Secours Health System of Marriotsville, Md.

Forum Health includes Northside Medical Center in Youngstown, Hillside Rehabilitation Hospital in Howland and Trumbull Memorial Hospital in Warren.

Having chosen Neumann after interviews with four candidates, Forum needs an interim CEO to begin work immediately, Forum said in a Thursday afternoon filing in bankruptcy court, where it filed for Chapter 11 bankruptcy reorganization March 16.

“A leadership void would do maximum damage. The future of these medical facilities, the terms of the plan of reorganization and the structure of the businesses all need to be resolved in the next few months. Doing so without a strong leader at the top would be counter-intuitive, counterproductive and risky,” Forum said.

Neumann would replace Walter “Buzz” Pishkur, who resigned as CEO, effective Oct. 9. Forum has asked the bankruptcy judge to approve the retention of Pishkur as a consultant to be paid up to $9,000 a week through May 31, 2010, unless Forum sells all of its assets before then.

Forum’s creditors asked that someone with health-care experience be appointed to lead the hospital system.

Forum proposes to appoint Neumann under an interim services agreement with FTI Consulting Inc. of Baltimore, doing business as FTI Healthcare. Forum proposes to pay FTI $75,000 per month under the agreement, with Neumann to be subject to the authority and control of Forum’s board of directors.

FTI would not be permitted to substitute anyone for Neumann without the prior written approval of Forum.

The interim services agreement is to run through Dec. 31, subject to automatic monthly renewal thereafter, until either Forum or FTI gives at least 30 days’ notice of intent to terminate the agreement.

The agreement allows for rapid replacement of Neumann if Forum’s board becomes dissatisfied with his performance and the board’s concerns can’t be quickly resolved, according to Forum’s court filing.

“The board [of Forum] retains the right to set Mr. Neumann’s responsibilities, to require FTI to replace him and to terminate FTI and Mr. Neumann,” according to the filing.

A hearing in the Forum case is set for 9:30 a.m. Tuesday before Judge Woods in U.S. Bankruptcy Court at 10 E. Commerce St.

milliken@vindy.com