A judge has ruled that Youngstown, Ohio-based Forum Health cannot use donations from Trumbull Memorial Hospital Foundation or Western Reserve Health Foundation to pay unsecured creditors, according to a Tribune Chronicle report.
Although the foundations are linked to Forum, the judge ruled that they are separate non-profits, and therefore cannot fund Forum's payments to unsecured creditors in its Chapter 11 bankruptcy.
The ruling also dismissed the foundations' bankruptcy cases, filed to protect their corporate and private donations.
Trumbull Memorial foundation has about $8.1 million in unrestricted funds and Western Reserve foundation has about $4.3 million.
Read the Tribune Chronicle report on Forum Health.
Read more coverage on Forum Health:
- Ohio's Forum Health and Akron Children's Hospital Go to Court Over $8M
- Following Acquisition by CHS, Ohio's Forum Health Initiates Layoffs
- CHS Completes Acquisition of Ohio's Forum Health
Although the foundations are linked to Forum, the judge ruled that they are separate non-profits, and therefore cannot fund Forum's payments to unsecured creditors in its Chapter 11 bankruptcy.
The ruling also dismissed the foundations' bankruptcy cases, filed to protect their corporate and private donations.
Trumbull Memorial foundation has about $8.1 million in unrestricted funds and Western Reserve foundation has about $4.3 million.
Read the Tribune Chronicle report on Forum Health.
Read more coverage on Forum Health:
- Ohio's Forum Health and Akron Children's Hospital Go to Court Over $8M
- Following Acquisition by CHS, Ohio's Forum Health Initiates Layoffs
- CHS Completes Acquisition of Ohio's Forum Health