Most stainless steel is very red hard (meaning it doesn't move well under the hammer), and also air hardening which becomes a big problem because of all the thermal cycles involved with forging a knife.
There are some stainless alloys that take to it better than others, and it can be done, but not as well usually. I think Randall actually offers forged stainless blades still, but they use an alloy (440B?) that isn't very common and not as high performance as some of the newer steels available.
I don't know for sure, but I think the issue with getting sick is the high alloy content. Stainless steels have a much higher alloy content. Some of the alloys involved, like vanadium, are very harmful and make the fumes involved with working the steel at high temperature very dangerous.