UMC-Children’s Hospital deadline comes without agreement

Deal or no deal?

Still no deal between University Medical Center and the hospital it shares its building with and is trying to save from insolvency.

Thursday was the deadline UMC gave El Paso Children’s Hospital to complete a restructuring agreement. Now that the deadline has come and gone. With millions in Medicaid reimbursements for Children’s Hospital dependent on that deadline, ABC-7 wanted to know whether the deal is still going to get done or not.

Issues arose between UMC and Children’s Hospital early last year after Children’s stopped paying UMC for rent and services, accruing a nearly $100 million debt, a figure Children’s disputed. If a deal is reached, Children’s would continue as an independent hospital, under UMC oversight.

“I don’t think there is reason for concern at this point,” said El Paso County Commissioner David Stout, who has been following the negotiations closely. “UMC is very close to being finished with the due diligence study. Hopefully by next week is what we’re hoping.”

Stout said they are also awaiting an independent yearly audit on Children’s.

“Those are the two main deals that are holding it up or keeping a contract from being signed,” Stout said.

UMC Spokesman Ryan Mielke told ABC-7: “That date (April 30), was a target. The due diligence process will not come to a stop simply because of that date. It takes a while. It’s just a lengthy task.”

Stout said the deadline was important because May 1 was the deadline for UMC to apply for Medicaid reimbursement on behalf of Children’s for up to $2 million.

“Even though the contract has not been signed,” Stout said, “UMC still made the transfer.”

Stout said he’s cautiously optimistic the deal will be done soon. He said Children’s would like to have a signed contract by May 15.

“I think we’ve come a ways from where we were back in march when we had the old UMC board and they were butting heads with Children’s,” he said. “I’m still optimistic something can be done to make sure Children’s continues to provide the level of services it is right now.”

Stout said another, more important Medicaid deadline, is coming up June 1, where stout said $10 to $12 million in reimbursements will be at stake. He said although negotiations are “fragile,” he is hopeful the deal will be done before then.