Our county hospital and the children’s hospital have signed a preliminary agreement that will control how they go forward.
Make no mistake, the county hospital will be in charge.
According to the proposed term sheet:
- UMC would become the sole corporate member of EPCH (in other words the only owner).
- The UMC Board has the right to approve and/or remove EPCH Board Members.
A bit of good news for the children’s hospital is that the county hospital will perform their services at “cost”. We don’t know what kind of mark up the county hospital was previously taking on under the old agreement. The only thing that would probably be better for the children’s hospital is if they competitively bid the services. They might find that the county hospital’s cost is higher than what a for profit would charge.
The lease
Many of us wonder why the children’s hospital has to pay rent when the voters funded the bonds that were used to build the building. The county hospital is getting paid for something that they did not buy.
The proposed term sheet does not even mention the rent situation.
Pouting?
The outgoing chairman of the county hospital board did not attend the meeting where the tentative agreement was reached. We have to wonder is he was part of the problem all along. Did he take his marbles and go home when things did not go his way?
We deserve better
elpasospeak 
The most important thing left hanging is transparency into EPCH. Because we still have an invisible money pot to fund UMC in the name of “rent.”
LikeLike
With UMC being the “sole” owner I don’t see how they can keep the records secret going forward.
Brutus
LikeLike
While we’re at it, how about some honesty and transparency at UMC and from the county judge and commissioners on matters related to both hospitals. As I recently pointed out, UMC is using consolidated financial reporting to make it harder for us to understanding the financial performance of UMC and the financial relationships between the various entities under the UMC umbrella. Even UMC’s outside auditors disclaimed UMC’s method of financial reporting.
LikeLike
The terms of the agreement prove that UMC was over-charging CH from the start and that there was no legal reason that required UMC to charge rent and egregious fees. UMC will now put in the kind of cost structure that should have been in place all along and then claim that they saved the day because they are better managers.
One of the terms is that UMC gets to approve the selection of a new CH CEO. No one has raised the question of what will happen to the new CEO who was hired less than a month ago. What kind of golden parachute will he get when Valenti decides he wants someone else?
LikeLike
Can UMC outsource services from other than UMC if it can be done cheaper? I hope so.
LikeLike
Transparency at EPCH YES !
LikeLike
So what happened to the “Stark Law” argument? Obviously that was all bullshit. The UMC/Valenti’s used the CH to balance his books and make the hospital look profitable while the hospital system itself was bleeding money. Amazing.
LikeLike
The “Stark Law” argument was an excuse served up months ago by a Valenti apologist who occasionally posts comments on this blog. When I pointed out that the Stark Law has exceptions and safe harbors that apply to non-profits, the person went quiet. All the time people were asking about the reasons for the exorbitant lease fees, UMC skirted the issue as did Escobar and the commissioners. UMC never publicly used Stark as the excuse because they knew they would be caught in a lie. I get the feeling doctors, employees, and friends of UMC were used to spread misinformation.
If Valenti is allowed to keep his job after the deception regarding bonsuses and the anticipated write-off of $40 million in debt, which he is now claiming is “soft dollars”, then there is no honesty and integrity at UMC or in county government which oversees UMC. You never heard UMC or Valenti use the phrase “soft dollars” when they were trying to make Childrens Hospital look bad.
LikeLike
Thanks for pointing out that the question of this so-called rent has never been addressed. Meanwhile, why so many meetings in closed executive session for public entities? There is still something very rotten over there, and County Commissioners’ Court has failed miserably in their obligation to the tax paying public.
LikeLike
Unfortunately, we didn’t elect the UMC board, they were appointed. And, now the fraud committed by the county, hides behind their new managers, like the city, to get away with having to be transparent.
LikeLike