Forum cleared to pay operating costs
Hospital system runs on about $1 million a dayBy LARRY RINGLER / Tribune Chronicle
YOUNGSTOWN - Forum Health got final bankruptcy court approval Tuesday to pay its operating costs from available cash, but Judge Kay Woods delayed a decision on whether a watchdog for patient care should be appointed.
The final version of the order was expected to be submitted for Woods' signature later Tuesday, said Forum attorney Shawn Riley, noting the order needed to be entered ''fairly quickly'' because the interim order expired Tuesday. Woods said the interim order would continue until the final order was official.
Forum had $20 million in available cash on March 17, the first day of court hearings after the system's Chapter 11 bankruptcy filing March 16. The system uses about $1 million day to operate, President and Chief Executive Officer Walter ''Buzz'' Pishkur said at the time.
The final order includes a change that gives Forum some breathing room if it can't file a reorganization plan by the Sept. 15 deadline.
The new language states such failure won't be reason for the bondholders to terminate Forum's right to use its cash, known as ''cash collateral,'' as long as Northside Medical Center is cash-flow positive apart from the system's other hospitals, Trumbull Memorial Hospital and Hillside Rehabilitation Hospital.
Youngstown's Northside is widely seen as the financial drain on Forum, accounting for $75 million of the system's total $100 million deficit over the last four years.
In order to keep using its available cash, Forum is required today to submit the draft of its plan on how it would dispose of Northside. A final ''disposition plan,'' in which Northside would be sold, turned over to another operation (such as the government) or closed if it can't stand on its own, is due May 15.
The draft won't be released to the public, according to Forum attorney Michael Gallo of Youngstown.
A large part of the hearing focused on whether Forum must bring in an ombudsman to monitor the quality of patient care during bankruptcy. The hearing ended with strong words from Woods that appointing such a watchdog wouldn't indicate Forum's patient care is lacking.
Arguing in favor of the requirement, U.S. Trustee Ronna Jackson noted the ombudsman's initial report wouldn't be done for 60 days, a period that would include the potential closing of Northside. Jackson said the court would have no way to monitor patient care in such an event without the watchdog.
In opposing an ombudsman, Gallo pointed to Forum's awards and a report done for the Ohio Attorney General's Office that praised the system's patient care.
He said those favoring appointing a watchdog relied on a series of ''what ifs,'' including any labor issues that might arise or if Northside's inability to balance its books led to its closing.
Gallo said hospital management is in negotiations now with some of its labor union, although he said he couldn't talk publicly about the meetings.
If Northside is forced to close, the process would take 30 to 60 days, Gallo said. Since the average patient stay is 4 1/2 days, ample time would be available to protect patients, he said.
In addition, Trumbull Memorial Hospital is ''adequately prepared'' to handle any patient transfers within 30 days, he said.
The discussion of patient care prompted cautionary words for another attorney and Woods.
Heather Lennox, attorney for bond insurer MBIA, said discussing the pros and cons of a patient care watchdog is ''irresponsible'' because all the facts of a reorganization plan aren't known. She said public speculation about what might or might not happen before a plan is prepared ''is not in the public service.''
In continuing the hearing about an ombudsman, Woods stressed such an appointment wouldn't suggest a hospital doesn't have high quality patient care.
''It's not a negative reflection on the delivery or future delivery of care,'' she said.
The ombudsman hearing is scheduled to resume May 27, although Woods said she would deal with the issue sooner if necessary.
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OldManGrump2
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04-15-09 7:32 AM
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Too late for the Nurses of Forum to get those new jobs. Looks like both the Cleveland Clinic and Akron Summa Health Systems are doing job freezes too now that the economy is in the crapper. Their union better negotiate now that they are stick at Forum.
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