UMC releases its fact sheet on situation with El Paso Children’s Hospital

University Medical Center has released the following fact sheet regarding the current situation with El Paso Children’s Hospital.

The Facts Do Matter.
The University Medical Center (UMC) wants to ensure that information is shared withour entire community, especially when it comes to our relationship with El PasoChildren’s Hospital (Children’s Hospital).

UMC has always been Children’s Hospital’s strongest advocate, from Children’sHospital’s inception and approval by voters in 2007 to its grand opening in 2012, totoday.

In light of the public interest in the ongoing discussion regarding Children’sHospital’s debt, there is an opportunity to ensure that medical staff, administration andthe El Paso Community receive the facts.

1. What is the cause of the current public debate between Children’s Hospital andUMC?

UMC provides numerous services that Children’s Hospital has contracted for,from general administrative service to utilities to housekeeping to food service tomaintenance, and more. Children’s Hospital stopped paying for those serviceslast year but UMC continued to provide the services in order to give EPCH time toimprove its financial situation. At the time Children’s Hospital stopped paying for services, it was already well over $50 million in debt to UMC. The debt to UMC has since grown to over $90 million.

2. Are UMC and Children’s Hospital BOTH funded by taxpayers?
No. UMC and the Children’s Hospital are two legally distinct organizations. One (UMC) is taxpayer supported, while the other (Children’s Hospital) is a separate, nonprofit hospital.

3. Why does Children’s Hospital have to pay rent?

The original plan for the Children’s Hospital which was approved by the El Paso Commissioners Court in 2007 prior to the bond election, called for the Children’s Hospital to lease the facility from UMC at fair market value. There was never any plan that the Children’s Hospital would be allowed to occupy the facility for free.

In February 2012, the Children’s Hospital signed a thirty (30) year lease that provides for payment of rent for use of the facility as well as reimbursement for utilities and payment for engineering and security services. The rental amount was negotiated by Children’s Hospital and UMC based on appraisals obtained by each entity.

4. It has been said that the Children’s Hospital Board (an independent board) was “bullied” by UMC into paying back loans early or signing certain agreements that obligated them to pay for services. Is that true?

. The El Paso Children’s Hospital Board has a fiduciary obligation to its management, its associates, and the patients of El Paso Community the hospital serves, to make responsible agreements that are in the best interest of their hospital. It would be irresponsible to state that either UMC could affect their decisions or that Children’s Hospital Board members would allow that to happen, given their obligation as board members to protect the interests of the hospital in all actions.

5. Media reports have stated that the amount of debt accumulated by El Paso Children’s Hospital is in dispute. Is that true?

No. Any reports that the amount is in dispute are either wrong or extremely misleading. Both UMC and Children’s Hospital have certified in signed documents that the debt accumulated through September 2014 is $81.3 million. Again, this debt was formally acknowledged through signed certification from both organizations — and reported to auditors. The debt has since continued to accumulate at the same rate, with the current debt estimated at over $91 million.

6. What is UMC doing to fix the situation?

UMC offered to the Children’s Hospital Board a term sheet for their approval on an ‘as is’ basis until Friday, Feb. 27, close of business. The term sheet provides Children’s Hospital with a path toward turning around its condition through affiliation with UMC. In the event Children’s Hospital chooses not to accept the term sheet by Friday, Feb. 27, then the offer is automatically withdrawn. The term sheet serves as a roadmap for the two hospitals to work together and become more closely aligned.

7. Will the nurses, doctors and staff at Children’s Hospital have security if UMC’s solution is ever adopted?

YES! That is why UMC is working so hard to reach success with Children’s Hospital. Under the UMC proposal, nurses and staff at Children’s Hospital would remain employees of Children’s Hospital and the physicians would continue to as members of the Children’s Hospital medical staff. UMC is committed to continuing pediatric healthcare careers and services at Children’s Hospital, and if given the opportunity, UMC will do just that.

8. How would acceptance of UMC’s proposal have affected physicians at Children’s Hospital?

It would allow the physicians to continue to provide the best pediatric care in the nation. Under the UMC proposal, the physicians at Children’s Hospital would continue to practice as a separately licensed Children’s Hospital with its separate board and CEO and with a separate medical staff focused exclusively on pediatric care.

9. Why Does UMC Think It Can Save the Children’s Hospital?
? UMC has had steady, consistent leadership for the last 10 years; while Children’s Hospital will have its fourth, yes, fourth CEO in less han 2 years (start date March 2, 2015)
-UMC has provided financial support for Children’s Hospital
-UMC recruited more than half of the physicians working at Children’s Hospital
-UMC built Children’s Hospital and ensured it was constructed as a first-class hospital – unmatched anywhere in the southwest
-UMC’s goal is to ensure the vision of a separate Children’s Hospital with top-notch physicians serving the children of the El Paso region remains intact

About UMC: For 100 years, University Medical Center of El Paso (UMC) has been providing exceptional, high quality care for the entire El Paso region. As El Paso’s only not-for-profit, community owned hospital and healthcare system, UMC is home to the region’s only Level I Trauma Center and was recently chosen by El Paso as its No. 1 preferred hospital. UMC’s mission is to enhance the health and wellness of the El Paso community by making high quality, affordable healthcare services accessible to all, while providing healthcare-related education, research and innovation. Throughout 2015, UMC celebrates its centennial.

Source: University Medical Center