UMC’s Valenti explains financial problems at EP Children’s
El Paso Children’s Hospital, which has been operating for two years and three months, owes University Medical Center $68 million in rent and other support services.
ABC-7 has been staying on top of this story for quite some time, but today three additional shortfalls were cited for the growing debt, other than a decrease in federal and state medicaid reimbursements.
UMC’s President and CEO Jim Valenti says Children’s continues to excel and set new standards clinically. He even mentioned there are currently 59 patients being treated at EPCH.
A PowerPoint Presentation pointed out to board members the main issues EPCH has, with the first one not able to be controlled by hospital staff, according to Valenti:
Federal and state Medicaid reimbursement changes has significantly shifted in the seven years since voters approved the hospital.
Inpatient volume is down 10 percent compared to fiscal year 2013.
The accounts receivable department has been going through restructuring.
Overhead and operating expenses of EPCH are too high.
UMC has decreased costs in services in provides to Children’s, such as laboratory work and anesthesiology, in an attempt to cut costs and help the hospital recover some of the money owed.
Wednesday afternoon into the evening, the third strategic planning committee made up of joint organization members from UMC, Children’s, and El Paso First insurance took place. Valenti couldn’t comment after the special board meeting because he needed to attend the meeting.
In a March letter sent from Valenti to former Children’s CEO Larry Duncan, Valenti requested that Children’s obtain financial equilibrium and take steps to pay back to debt by September 30, 2014.
