UMC board members meet with commissioners about debt resolution

El Paso County commissioners now have a better understanding of how University Medical Center and El Paso Children’s Hospital plan to move forward to resolve the multi-million dollar debt.

ABC-7 broke the news last Tuesday that UMC and neighboring Children’s finally came to an agreement and Monday commissioners were briefed about the due diligence phase happening now.

Children’s will pay about $50 million to UMC. That means $40 million is the amount the county will not get back but the UMC board calls it a capital investment.

“We don’t know what the financial health is of Children’s but I think we have a very strong plan in place and there may be some changes along the way but I think for the most part, it’s a good document and we’re gonna keep moving forward,” Commissioner David Stout said.

Stout, along with other county commissioners, got their questions answered from UMC board members about the plan in place to save El Paso Children’s Hospital. Talks took place behind closed doors and the parties involved say a confidentiality agreement is in place.

UMC and Children’s boards voted to agree on a term sheet last week. The debt amount of $49.3 million to be paid was finally agreed upon between the two hospitals. The other $40 million is considered a capital investment, which a UTEP economics and finance professor said will be stock UMC owns in Children’s.

Forward is the direction county officials want to head now that UMC is researching and analyzing Children’s financial books.

“I want to get to the point where we’ve got the due diligence behind us, where we can better plan for the future and talk through what the next one, two, three, four years will look like and beyond,” County Judge Veronica Escobar said. “I’m kind of more focused on the long term. That’s my interest but we’ve gotta get through the next 45 days to get there.”

Monday’s meeting lasted a little over an hour. Everyone ABC-7 spoke with said they’re optimistic about the future relationship between the two hospitals.