The $120 million sale of three-hospital system Forum Health to Franklin, Tennessee-based Community Health Systems Inc. (NYSE:CYH) is expected to close sometime today.
Community Health Systems will soon appoint a CEO to oversee the company’s operations in the Youngstown area, a company spokeswoman told the Youngstown Business Journal Daily.
Forum filed for bankruptcy about 18 months ago. Initially, it appeared Forum would be sold for $70 million to another for-profit hospital operator Ardent Health Services, also of Tennessee. But Community Health Systems stepped in with an 11th-hour, larger bid in early August.
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After appearing to get off to a rocky start negotiating new labor contracts with various unions representing Forum workers, Community Health Systems was able to reach agreements with the major unions, including the Ohio Nurses Association, in the last month or so.
About two weeks ago, Ohio Attorney General Richard Cordray gave the sale his blessing, citing Community Health Systems’ pledge to keep Forum’s three hospitals open and invest at least $80 million in them.
Forum’s three hospitals are: Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren, and Hillside Rehabilitation Hospital in Howland.
Forum spent the last several years in financial trouble, due to weakness in the local and national economy and a growing indigent care population, the Business Journal Daily reported.