UMC Gives Debt-Ridden Children’s Hospital An Ultimatum
The head of El Paso’s county hospital board said Monday El Paso Children’s Hospital needs to fend for itself or close its doors.
During a meeting, representatives with UMC and Children’s talked about the more than $80 million Children’s reportedly owes the county hospital. Children’s disputes the amount, but both parties agree the debt continues to increase at a rate of $33,000 a day.
After the three hour meeting ended, the UMC board announced it had approved an offer that will preserve pediatric services at Children’s. However, it’s a “take-it or leave-it” offer.
“We have always been (Children’s) greatest supporter, and that is why we have been working so hard to find a solution to their current situation,” said William Hanson, Chairman of the UMC Board of Managers.
If Children’s does not accept the offer by Friday, UMC will stop providing services. Children’s stopped paying rent and fees to UMC about a year ago.
The UMC Board listed the following provisions Monday:
– Commitment to continuation of the El Paso Children’s Hospital
– Continuation of separate license, governance, and CEO
– Consideration of the debt
– Authority to UMC to help ensure the future success of the Children’s Hospital.
The UMC board did not explain the provisions in detail, but said Childrens had three days to accept them.
“I really don’t know how to comment. We’ve been meeting with UMC for many months now and as early as February (UMC) gave us the term sheet and we worked on it, made some progress,” said Rosemary Castillo, chairman of the board for El Paso Children’s, “The next time we met, it was a totally different term sheet and the last term sheet we saw was totally different. We will look at this next one and deliberate on it at our next board meeting. That’s the best we can do.”
According to UMC, 33 positions are tied to the services it provides Children’s. Those employees would be reassigned, not terminated, if UMC eventually cuts off services.
UMC officials are scheduled to meet with El Paso County Commissioners Wednesday morning at the County Courthouse Downtown.
