Forum chief offers answers
By AMANDA SMITH-TEUTSCH Tribune ChronicleArticle Photos
WARREN - Selling Beeghly Medical Park exacerbated the cash burn at Forum Health's Northside Medical Center and likely hastened the system's bankruptcy filing, hospital officials said Monday.
"As we look back on that transaction, we can all agree it has crippled Northside Medical Center," Forum Health CEO Walter "Buzz" Pishkur said after the public "Forum on Forum" event Monday evening at the St. Demetrios Community Center.
Pishkur has held three such sessions so far to inform people about the hospital system's progress in Chapter 11 bankruptcy and its future as a leaner operation. The last session is set for 7 p.m. Wednesday at St. Patrick's Catholic Church in Hubbard.
Northside exhausted its own cash reserves in July of last year, and since has been drawing on corporate cash to meet its obligations. Five weeks ago, the health care system filed for Chapter 11 Bankruptcy protection as it was in danger of running out of money, Pishkur said.
Admissions at the hospital - the main revenue generator for hospitals - have fallen dramatically since the Beeghly medical facility was sold for $26 million to Akron Children's Hospital.
Some people at the meeting said they believed the hospital chain hasn't done enough to stop the cash burn at Northside. Tom Connelly, president of the registered nurses' union at Trumbull Memorial, said his bargaining team tried to address the problem during the last round of contract negotiations.
"In 2006, we begged, we pleaded for someone to control costs at Northside. But you didn't and now we're in concessionary bargaining again," Connelly said.
He also said the system wasted money hiring the consultants Wellspring to propose more cost-effective ways of running Forum Health.
Pishkur countered that the initiatives proposed by Wellspring saved the system money. In 2007, the system began selling off facilities, including Beeghly Oaks, a long-term care facility, and Beeghly Medical Park. Those sales led to the creation of the $55 million debt retirement reserve the system currently has in place.
However, without the referral facilities, Northside admissions fell. The hospital system projected a $29 million loss this year before the bankruptcy.
"There's no accountability," Connelly said. "No one's admitted, 'We made a mistake, we did this wrong, we misread the markets.' All we are told is do more with less, do more with less, do more with less and keep it moving, people. And we'll do it, but we don't like it."
Connelly placed blame for the situation on Forum's leadership and the millions of dollars he said were paid to Wellspring for the study and "all of these good people who were really smart who made all of these decisions that were so obviously wrong."
Gus Polychronis, a Warren businessman and leader of an effort to separate Trumbull Memorial and Hillside from Northside, asked Pishkur to consider the move.
"We are all very interested in that," Polychronis said.
All of the current financial trouble is emanating from Northside, he said.
Pishkur said he didn't think it was in the best interest of the community or the hospital chain to close the Gypsy Lane facility.
"There is a clear preference on the part of our bond holders that Northside be closed," Pishkur said. "But a lot of people want us to do whatever we can to help that facility be financially viable."
Forum Health has until Wednesday to file a contingency plan for the facility in bankruptcy court.
|
Kovacs
|
|
|---|---|
|
04-24-09 12:07 AM
|
Interesting that this Pishkur idiot is claiming no responsibility for this. Pishkur has been on their board since June of 2005. He was heavily involved in the sale of that Beeghly building so his acting as if he is a victim is disgusting. He also appointed himself to this role. He was the chairman of their weak board and he somehow selected himself! Some of my friends have family that work at these facilities and have told me that not quite all of the bills are being paid either. Pishkur is picking and choosing where money is goes. Its definitely going to the TV stations and Radio stations. Does anyone believe this crook??!
|
|
UneducatedDrone
|
|
|
04-21-09 9:02 PM
|
They'll go to the next closest one. What's the closest hospital to northside? lol
|
|
reader
|
|
|
04-21-09 7:59 PM
|
People needing health care have to go somewhere. Close Northside, and what you think they are just going to go away? They will go to another hosipital and that hospital will have the same financial problems Northside has.
|
|
Thinker
|
|
|
04-21-09 7:32 AM
|
Your wife is in health care..is she in a union?
|
|
OldManGrump2
|
|
|
04-21-09 5:33 AM
|
I think there is plenty of blame to go around for Froum's bankruptcy. Management screwed up by hiring consultants and selling valued properties. Unions screwed up by not granting deep concessions early on. Youngstown's population is down to 72,000 and the Mahoning Valley is down population everywhere too so there is a lot less people needing medical care, and those that do tend to not have health insurance or jobs. Ultimately, I believe Northside will CLOSE because there are too many hospital beds for the number of patients in the valley these days.
|
