El Paso Children’s CEO addresses concerns at morning meeting

A week after El Paso Children’s Hospital filed for Chapter 11 bankruptcy, its CEO remains the only official with the hospital to talk publicly about what’s going on and what’s next.

Mark Herbers opened himself up to taxpayers one-on-one at city representative Cortney Niland’s weekly community meeting at Village Inn, at 2929 N. Mesa Street on Wednesday morning.

Among the officials from University Medical Center, Children’s and the County Commissioners Court were about a dozen concerned residents.

Some asked if there should have been a back-up plan for the hospital to pay its debts in case the revenue generated wasn’t enough.

An attorney in attendance said El Pasoans should brace themselves for a long legal battle that could drag on in the courts for a year or more.

But the big concern for those at the meeting is how the children’s hospital can move forward and not completely waste the taxpayer investment from the 2007 bond election that built the hospital.

“There will be available to the children’s hospital new state funding come October to the tune of $8 million a year that we haven’t been receiving because we hadn’t been in existence for three to four years and that’s what is required,” Herbers told ABC-7 in response to that question, adding, “We are starting a private foundation not affiliated with UMC so that we can secure our own philanthropic base.”

Commissioner David Stout was at the meeting and also spoke to ABC-7.

“I think it’s good that SOMEBODY from Children’s is out in the public talking about (the bankruptcy filing and the hospital) because the board members are nowhere to be seen,” he said.

While Stout appreciates Herber’s effort to talk with taxpayers, his vision is less optimistic.

“I don’t know what to tell taxpayers at this point, because I don’t know what the future looks like,” he said. “They’re going into mediation (with UMC). And if nothing happens in mediation, then it’s going to be up to the judge to decide.

“The judge may find that the hospital doesn’t have money to pay off its bills. Then they have to move into Chapter 7 bankruptcy, which is liquidating and closing the doors.

“That’s the whole problem with going into bankruptcy,” Stout concluded. “The future is so uncertain for the children’s hospital.”

The next mediation session between UMC and Children’s is set for June 11.