Day two of mediation between UMC and Children’s yields no agreement

Friday marked two days of mediation between University Medical Center and El Paso Children’s Hospital.

Children’s declared Chapter 11 bankruptcy in May while UMC claims the hospital owes it nearly $100 million.

UMC officials tell ABC-7 they wrapped up the second session Friday evening with no end results. Since the mediation is going on behind closed doors, Friday ABC-7 spoke with experts to get a better idea of what’s going on inside.

“A lot of the public really doesn’t understand what mediation is all about. They see the word and sometimes they read meditation,” said mediator, Bill Hardy.

Hardy has been a mediator for six years.

He tells ABC-7 meditation is far from what happens between two clients trying to work out an agreement.

“Anytime you have a dispute a mediator is there to work hard for both sides,” said Hardy.

Hardy says a mediator must be neutral, recognize both parties agendas and in the case of UMC and Children’s figure out governmental limitations.

“Another practical consideration is going to be the public’s opinion about what is being done by one or both sides,” said Hardy.

Hardy told ABC-7 usually both parties are in separate rooms, There’s no contact between them and everything is kept confidential.

“A mediator will go from one conference room to another developing the facts and framing out what possible resolutions can be obtained in the case,” Hardy said.

This is where Hardy says a mediator can be an advantage over going to the courts.

“You’re only limited by your imagination sometimes and there’s certain agreements that can be entered that can’t be ordered by a bankruptcy judge or even a state or federal judge,” said Hardy.

A mediator will also be quick to remind both clients what is a stake if one or the other doesn’t budge on their plan.

“I’m personally here to talk about the weaknesses because they have to have a good evaluation of what the risk is of not settling,” said Hardy.

Hardy says he feels optimistic about the hospitals striking a deal soon.

“I know that they are concerned and that they want to get something resolved so I think there’s a good chance something good will come out of the mediation,” said Hardy. He also says mediation is better than going to the courts which can become costly and lengthy.

Again, UMC and Children’s did not come to an agreement Friday but officials tell ABC-7 they are going back into mediation in Austin on Tuesday.