UMC, Children’s Hospital still working to finalize deal

University Medical Center and El Paso Children’s Hospital are still working to finalize a long debated deal. There were smiles and easy-going attitudes as UMC board members and county commissioners exited a two hour long joint session Monday, but the deal isn’t done yet.

Looming over the closed-session discussions are big medicare funding targets and a new self imposed deadline of Friday to get the deal done. UMC and El Paso Children’s missed their initial May 1 deadline to have a deal in place.

That was initially said to be a deadline for UMC to apply for medicaid reimbursement on behalf of Children’s for up to $2 million. But UMC applied for the funds for El Paso Children’s anyway, even without a contract. UMC said the due diligence process wasn’t complete, and a deal couldn’t be signed then.

Monday, UMC spokesman Ryan Mielke said that the due diligence process is progressing, but couldn’t say if they will have a deal by Friday.

“I would characterize this as both sides,” Mielke said. “Both hospitals wanting to move forward, making sure they got the agreement and the discussion that they sought. Whether that passes today, tomorrow or the 15th is another issue. The key is to make sure the discussions take place, due diligence is completed, and they do have a result.”

County Judge Veronica Escobar said the due diligence process is about 90 percent done.

“The issues have now been sort of narrowed down to one significant issue,” Escobar said. “On that issue, it will be up to Children’s to take action. And the sooner they take action, the sooner we can close a deal. If they don’t take action on that outstanding issue, we can’t close a deal.”

Commissioners took no action Monday, and the information discussed will now be brought to the UMC board meeting Tuesday.