Children’s Hospital $59M debt to UMC continues to grow

Although the newly-formed strategic planning committee isn’t meeting this week, ABC-7 continues to ask questions about El Paso Children’s Hospital’s financial status.

“We’re going to look at changes we can make while ensuring quality of care is maintained for our patients,” interim CEO Ray Dziesinski from El Paso Children’s Hospital said.

The financial state of EP Children’s Hospital is considered a, “serious problem,” by hospital board members and its management team. UMC’s CEO Jim Valenti says Children’s owes it more than $59 million in rent and other support services.

On Monday, Valenti reported to county commissioners that UMC is operating very well financially, but he expects the debt Children’s owes UMC to continue to grow $2.8 million a month, for the next six months.

“It’s not fair to tell people … sell the public one thing and then you turn around, miss your projections and say, ‘oops.’ There is no accountability. That’s the problem. You have two non-elected boards,” concerned resident Mike Rooney said. He has previously attended UMC board meetings. Rooney believes the debt is ultimately going to fall into taxpayers hands.

“I can tell you for a fact that there has been no talk of that up to this point,” UMC spokeswoman Margaret Althoff-Olivas said.

Dziesinski says EPCH’s operating budget is $70 million a year and in just the first six months of their fiscal year, the hospital has lost $9.6 million.

“Our challenges on the financial side will be resolved. It will take time,” Dziesinski said.

Valenti expects to see results from the strategic planning committee in the next one to two months. The biweekly meetings are closed to the public.