What UMC is proposing to get El Paso Children’s out of bankruptcy

Bankruptcy Judge Christopher Mott said University Medical Center has “an imperfect plan, but at least UMC has put something on the table.”

UMC said this fifth plan the hospital has come up with. UMC is presenting it after the Sept. 15 deadline for El Paso Children’s Hospital to come up with their plan. As of Aug. 13, EPCH has not submitted a plan.

UMC proposes taking EPCH under the county’s wing. UMC would appoint a CEO and board for EPCH. CEO Jim Valenti also said UMC would use the cash that remains from EPCH to pay off creditors EPCH owes, such as Texas Tech and pharmaceutical companies.

When asked it UMC would forgive the debt, Valenti said, “that’s for the future.” UMC Spokesman Ryan Mielke said that UMC would first pay off the creditors, then stabilize EPCH, before paying down the $100 million debt UMC says EPCH owes it.

“We want to be that safety net for the children’s hospital,” Valenti said.

The next bankruptcy hearing is Aug. 31 and will focus on the rent EPCH pays to UMC. EPCH claims UMC overcharges it.