UMC releases details of ultimatum given to El Paso Children’s Hospital

University Medical Center has released details of the term sheet it offered to the El Paso Children’s hospital as the two try to resolve a multi-million dollar debt that’s threatened the sustainability of both hospitals.

Children’s owes the county hospital more than $90 million dollars –a debt Children’s disputes.

A UMC spokesman said Tuesday the term sheet approved Monday by the UMC board is not a first draft.

According to the document, UMC proposes to reserve the power to approve the Children’s hospital budget, select and remove its CEO, change its name, incur debt or sell assets, as well as bankruptcy, dissolution or receivership.

Here are other highlights:

-UMC wants Children’s to designate a permanent, not interim, CEO, and appoint a new board of directors.

-UMC said Children’s owed it more than $89 million as of December 31st.

-It proposes to make Children’s pay just short of $50 million, and take what it calls “a membership interest” in Children’s for the other $39.9 million.

-UMC would become the sole corporate member of Children’s.

-Numbers would be updated and finalized should Children’s agree to the proposal.

-For a 5-year period, UMC would agree not to approve a bankruptcy filing from Children’s unless required by law.

-The hospitals would agree to a non-disparagement covenant

-UMC would retain the unilateral right to take any action related by Children’s if it’s required by law, if it’s necessary to maintain Children’s tax-exempt status or if UMC determines that Children’s board has failed to comply with its duties to protect the financial integrity of Children’s or to provide quality health care.

-UMC would provide written notice to county commissioners should it ever propose to merge Children’s into UMC