UMC, Children’s Hospital to have mediation on June 25; Children’s board chair releases statement
El Paso Children’s Hospital and University Medical Center will participate in mediation on June 25 through the U.S. Bankruptcy Court, Western District of Texas.
The announcement was made late Thursday night as part of a statement that Rosemary Castillo, Chair of the El Paso Children’s Hospital Board, issued regarding the board’s decision to file for reorganization under Chapter 11 protection.
Castillo’s statement is below:
“As we have stated throughout this process, the goal of the reorganization is to protect and ensure the continuity of the independent operation of EPCH. More importantly, we want to ensure El Pasoans that the Board, physicians, and hospital staff at EPCH remain committed to the mission of caring for the critically ill children of this region. In that regard, the decision to reorganize our hospital was not an easy one but one in which the Board had open and honest discussions over a lengthy period of time. After UMC decided not to sign the definitive agreement, or renegotiate after we gave them aMay 15deadline, we finally realized we had no other option but to seek bankruptcy protection for El Paso’s Children.
“We approached these decisions knowing that our actions would create significant media attention. And as a Board, we elected to not engage in any public debate – we feel that doing so would accomplish nothing of value and it also is not our intent to denigrate others. It is our belief that this matter is in the hands of the courts, where it can be resolved fairly, and hopefully, in quick order. During this process, the EPCH Board elected to have a single voice speak for the Board and the institution, and that voice has been and will be Mark Herbers, the El Paso Children’s Hospital CEO. Mr. Herbers is well aware of all aspects of the hospital and our reorganization objectives. One voice ensures clarity, and that is our focus for the public in this matter as we go forward.”
ABC-7 has attempted to interview Castillo several times since Children’s filed for bankruptcy, including going to her place of business and a Children’s meeting earlier this week. ABC-7 was kicked out of Children’s Hospital while trying to wait to interview board members after that meeting.
Children’s also said that if the binding mediation is successful, the closing documents will have been approved by both the Children’s and UMC boards as well as the El Paso County Commissioners Court.
“We are optimistic about the outcome of the mediation,” Herbers said in a statement regarding the June 25 hearing. “After a year and half of unfruitful discussions with UMC, we are looking forward to entering into a process that will be open and transparent, a process that the public can trust.”
Click on links to left of this article for ABC-7’s coverage of the Children’s and UMC financial problems.
