UMC sends letter to Children’s Hospital outlining dire consequences for Children’s Hospital

University Medical Center has delivered a letter to El Paso Children’s Hospital outlining dire consequences for El Paso Children’s after the two organizations were unable to come to terms on a financial plan to put Children’s Hospital on a sound financial footing.

UMC CEO Jim Valenti told ABC-7 on Monday that the letter would be coming on Tuesday.

The letter does not contain specifics of a proposal but instead says Children’s will receive a separate confidential proposal from UMC’s legal team.

UMC says it cannot continue to provide services to Children’s at no cost without endangering its own financial stability in the very near future.

UMC also says there’s an immediate risk that service providers may cancel agreements, triggering an immediate, unplanned closure of Children’s Hospital.

UMC stopped short of saying it would be the one to cancel those agreements, but it did say Children’s debt to UMC has grown to $71 million, and that Children’s Hospital’s financial condition has not improved.

UMC asks for a response from Children’s by Monday, June 23.