El Paso Children's Hospital, founded in 2012, is meeting this month with University Medical Center (UMC) to address the hospital's mounting debt. UMC chairman Ron Acton will spearhead the process, and plans on bringing in industry experts to assess the situation, according to the El Paso Times.
By the latest figures, El Paso Children's Hospital is $59 million in debt. The hospital claims that the 2008 recession, alterations in Texas Medicare reimbursement procedure and high start up costs have forced them into their current dire financial situation.
"We know that their board and administrative team are working hard to develop a restructuring plan that will put them on more solid financial footing so that they can continue to grow," a hospital spokesperson reported.
As a non-profit hospital, EPCH receives no taxpayer funding. To combat the deficit, the facility has terminated seven administrative staff members, consolidated several management positions and continues to look for more ways to improve the efficiency of care. The children's hospital has agreed to take on all of UMC's pediatric patients and responsibilities. So far, the hospital has repaid more than $33 million to UMC for start-up costs, and continues to research new ways to modify the terms of their debt.
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