It appears the financial problems of El Paso Children's Hospital will keep it from meeting some of its financial responsiblities through 2015.
Children’s CEO, Ray Dziesinski, told UMC CEO Jim Valenti that Children’s does not have the ability to pay what it owes UMC in 2014 and 2015.
Valenti said that is why the Children’s board and management and UMC are working around the clock to help Children’s stabilize its operations.
“If Children’s could’ve paid, we could’ve avoided these reductions, Valenti said.
Valenti will go before Commissioners Court on Aug. 4 and ask for approval of a $20 million line of credit.
“Our cash reserves dip in the month of October and November and we need a line of credit to add to our reserves,” Valenti said. “It will allow them to cover payroll, accounts payable, The line of credit is only for this year. It will cover October and November and we will pay it back in December, January - within 90 days.”
He said it is a gut-wrenching, somber feeling they all had on the campus Friday.
Despite the financial trouble Children’s is in, Valenti said voting for the children's hospital was the right decision.
Valenti said that Children's Hospital received a curve ball from Health and Human Services Agency in reimbursements that could not have been anticipated.
He added that it’s not just up to County commissioners but also the community has to decide to what extent UMC should subsidize Children’s.