Texas AG opposes EPCH’s bankruptcy agreement with UMC

The El Paso Children’s Hospital and University Medical Center are inching closer to finalizing a resolution.

A hearing was held Monday morning in Austin.

The judge and the legal teams representing UMC and Children’s started the hearing with congratulations all around, calling last week’s agreement “momentous.”

The resolution came after more than a year of bitter feuding over how to save the bankrupt children’s hospital. It calls for more involvement in Children’s operations by the County Commissioners Court and UMC’s board.

ABC-7 learned the Texas attorney general is objecting to the agreement. The AG is representing the Texas Health and Human Services Commission and Texas Tech.

The state is investigating whether Children’s improperly received Medicaid funding. Children’s got that money based on rent expenses, but in reality, the rent was not paid. Children’s denies wrongdoing, but if the state finds there was, it would be up to UMC to pay back that money once the new agreement is finalized. That could be anywhere from $12 to $36 million, plus fines.

The spokesman for UMC told ABC-7 that paying that amount and fines would pose a burden on the county hospital.

The next hearing is Wednesday, Oct. 28, in Austin, to give UMC and Children’s time to iron out any final issues.