Groundbreaking for The El Paso Children's Hospital (bankruptcy, taxi)

[katzpaw]

This is a children's hospital. El Paso needs it and the specialists it brings to El Paso.
The hospital's deficit is due to lower than expected Medicaid reimbursements and possibly higher than justified charges from UMC. I don't know why it was set up as a separate entity from taxpayer funded UMC - but we need it and one way or another we have to pay for it.

[malamute]

Originally Posted by katzpaw

This is a children's hospital. El Paso needs it and the specialists it brings to El Paso.
The hospital's deficit is due to lower than expected Medicaid reimbursements and possibly higher than justified charges from UMC. I don't know why it was set up as a separate entity from taxpayer funded UMC - but we need it and one way or another we have to pay for it.

Now the Children's Hospital owes University Medical Center $68 million and the debt grows every month by $2.5 million. That's causing a big hole in UMC's budget. UMC has not been able to say how this will impact taxpayers.

El Paso taxpayers are already getting it socked to them - very very hard - how will they come up with the $2.5 million every month and also the $68 million? It cannot be the El Paso taxpayers -- taxes are completely ridiculous already.

[TexasCCW]

It will get bought out by a larger corporation. It's only a matter of time.

[malamute]

Now Escobar is saying taxpayers will be on the hook if they don't fix it.

Expect a big tax hike in July.

[banal]

El Paso already has a solvent, non tax payer funded (although a large majority of its customers are probably on government subsidies) children's hospital and it is at Providence Memorial Hospital. Just let the facility fail (or be taken over by who ever) and lets divert the small amount of tax dollars we have into investments that are not insolvent.

[HookTheBrotherUp]

The deal was financed with bonds which the city passed, and by city I mean the taxpayers of El Paso. A bond is just another word for oath, promise, contract, etc. Simply it means that the taxpayers promised to back up the financing. This means that even if another entity purchases the hospital, they will buy it at a loss to El Paso much like a homeowner who is underwater on their mortgage takes a loss when forced to sell their house. However, that loss just does not go away, the debt is still owed since it is bond money. Likewise, you can let the hospital fail and even go bankrupt, but the debt is still owed because of the bond.

You, as an El Paso citizen, promised to backup the bonds whether you voted for the bonds, or not. Usually, bonds are passed by the voting minority because of the apathy of the majority. This is why it is so important to vote based on potential consequences, not just the warm fuzzy of the moment.

[atrabilius]

If the state wants to authorize the establishment of another medical school, it can be in El Paso, at UTEP, which I think has institutions like the nursing school that make it most of the way there already, and the Sierra Providence system can be its teaching hospital--it even has a pediatric hospital.

Obamacare will bring increased demand for doctors, which, ironically, can work to Texas' benefit, but I'm not sure El Paso can support two pediatric hospitals. I bet we're going to see them merge before long.

[malamute]

Originally Posted by HookTheBrotherUp

The deal was financed with bonds which the city passed, and by city I mean the taxpayers of El Paso. A bond is just another word for oath, promise, contract, etc. Simply it means that the taxpayers promised to back up the financing. This means that even if another entity purchases the hospital, they will buy it at a loss to El Paso much like a homeowner who is underwater on their mortgage takes a loss when forced to sell their house. However, that loss just does not go away, the debt is still owed since it is bond money. Likewise, you can let the hospital fail and even go bankrupt, but the debt is still owed because of the bond.

You, as an El Paso citizen, promised to backup the bonds whether you voted for the bonds, or not. Usually, bonds are passed by the voting minority because of the apathy of the majority. This is why it is so important to vote based on potential consequences, not just the warm fuzzy of the moment.

I suspect you are right. The taxpayers will get burned yet again, home ownership becomes that much more difficult for many.

[malamute]

Now it's up to $71 million.

UMC sends letter to Children's Hospital outlining dire consequences for Children's Hospital | News - Home

UMC sends letter to Children's Hospital outlining dire consequences for Children's Hospital

UMC says it cannot continue to provide services to Children’s at no cost without endangering its own financial stability in the very near future.

UMC also says there's an immediate risk that service providers may cancel agreements, triggering an immediate, unplanned closure of Children's Hospital.

UMC stopped short of saying it would be the one to cancel those agreements, but it did say Children's debt to UMC has grown to $71 million, and that Children's Hospital's financial condition has not improved.

[malamute]

And from the letter:

http://www.kvia.com/servlet/blob/vie...tal-letter.pdf

.....EPCH is insolvent.

....We recognize that the recent resignations of virtually the entire executive team at EPCH leaves your organization in a difficult situation......