El Paso Children’s Hospital files reorganization plan with bankruptcy court
El Paso Children’s Hospital has filed a restructuring plan with the U.S. Bankruptcy Court.
The plan lists two options as to how the hospital can move forward. Plan A calls for the hospital to team up with a sponsor other than University Medical Center that would help with the hospital’s operations. One option for a sponsor mentioned as a suggestion in the plan is Texas Tech.
Under Plan A, Children’s would remain an independent hospital. There is a possibility that under Plan A, Children’s may move to a different location.
The plan states: “One possibility under Plan Scenario A, however, is that the Debtor would reject the Lease and UMC Agreements if a strategic partner has sufficient space and resources to house the Debtor’s operations.”
If no sponsor can be found, Plan B calls for Children’s to accept the plan put forward by University Medical Center on Aug. 10, with some changes. Specifically, Children’s does not want to have the plan go through a final approval process by El Paso County Commissioners. It also adds that it does want it’s CEO to report to UMC’s CEO Jim Valenti. It also wants to retain two current board members for three months to help with the transition. Children’s also wants to remain independent for at least four years.
