Forum partnership still in works, doctors told

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Forum continues to explore ways to compete more aggressively in southern Mahoning County.

By WILLIAM K. ALCORN

VINDICATOR STAFF WRITER

YOUNGSTOWN — Forum Health is still pursuing a partnership in the development of the for-profit Valley Hospital in southern Mahoning County with Ed Muransky and physicians involved in the venture.

"The Valley partnership remains an important focus as we explore our options to compete more aggressively in southern Mahoning County," said Dr. Keith Ghezzi in a letter to Forum Health physicians.

"We have met frequently with Mr. Muransky and are full partners on this project. We hope that he is persuaded, as we are, that Forum's facilities and physicians could benefit greatly from the resources Community Health Systems offers," said Dr. Ghezzi in the letter obtained by The Vindicator.

At the same time, Dr. Ghezzi, Forum president and chief executive officer, said in his letter that the board of trustees continues to actively pursue a potential sale of the Forum Health system to CHS.

No details

The letter does not detail how CHS would fit into the development of a for-profit hospital. However, CHS operates numerous for-profit hospital systems around the nation.

Previously, Dr. Ghezzi said that Muransky had said that he would build the Valley Hospital with or without Forum's participation. Muransky is owner of the Muransky Co. and Southwoods Surgery Center in Boardman.

If that happens, instead of a partner, it would mean another competitor for Forum Health, Dr. Ghezzi said.

Dr. Ghezzi's letter, dated Sept. 11, reaffirms what he said in January that Forum's plan to build a for-profit hospital in a joint venture with physicians and private investors was still alive, despite the health system's acknowledged financial problems.

In January, a Moody's Investors Services report described the proposed joint venture, of which Forum would own 30 percent; some 120 physicians, 40 percent; and a private investor, Muransky, 30 percent, as risky.

At the time, Forum had signed an agreement for an external feasibility study on the project, and officials said there were no definite plans in place.

In its report, Moody's questioned Forum's ability to finance the project.

However, Dr. Ghezzi has said one of the advantages in selling Forum to CHS is that the firm has the resources to update facilities and equipment.

'Very appealing'

In his letter to physicians, he said CHS is a "very appealing company for many reasons, not the least of which is its commitment to physicians as the core asset of any hospital."

"CHS also brings to its hospitals a rigorous focus on quality ... and makes significant investment in training, technology, equipment and outcome tools to ensure that physicians have the resources and facilities that will help them enhance and promote their practices."

In a related matter, Dr. Ghezzi said it is not certain whether and how the possible sale of Forum Health to CHS would affect negotiations with Diamond Healthcare to assume operating responsibility for Forum's behavioral medicine programs. Diamond was originally slated to take over the behavioral programs Oct. 1.

alcorn@vindy.com

Tuesday, September 12, 2006