Allowance for fabrication

The bankruptcy judge has instructed our county hospital and the children’s hospital to negotiate.

No one has come forward with an explanation that makes sense as to why the children’s hospital has to pay rent to the county hospital when the voters are paying for the construction of the children’s hospital with bonds.

It seems that the county found a way to get paid for something that we are already paying for.

If I am correct our county hospital administrator recently said that the payments were not actually for rent.  Instead they were to pay for the inevitable depreciation and wear and tear on the building over the next several years.

If so

If that were the case we could expect to see the amount placed in reserve on the county hospital’s financial statements.  It wouldn’t be right to spend that money on regular county hospital expenses.  I don’t see such a reserve on their statements.

Also if they need to collect for the eventual refurbishing of the children’s hospital as a matter of sound financial governance they we should expect to see the county hospital accruing money in a similar fashion for their own building.  I don’t see anything like that on their financials either.

We deserve better

Brutus

4 Responses to Allowance for fabrication

  1. Helen Marshall says:

    In some respects everyone has behaved badly here, but it seems increasingly obvious that the bond issue for the Children’s Hospital was set up to ensure that it would fail and UMC would assume control. The incredible accounts that each side is offering as to what the rent was for and why it was or was not a fair charge are enough evidence that this is just a shell game,and the taxpayers will be left holding the bag.

    How many patients has Children’s treated, and what services does it offer that are not available elsewhere in El Paso? When the young child from Juárez was treated for the huge tumors growing on his neck, he went to Albuquerque – why? Children’s could not help?

    Like

  2. wondering says:

    Could we possibly get someone “in charge” to answer this question? Do we have to listed to Escobar excoriating the Children’s Hospital one more time?

    Like

  3. Jerry K says:

    Judge Escobar said the rent debt to UMC was “soft costs” when they agreed to convert it to equity in CH. But that was before everyone reneged on the agreement.

    Like

  4. Thank you for pointing out that no one has yet explained the double billing represented by EPCH paying such an exorbitant rent for a building that WE should own (not UMC), if indeed it is our bond money that paid for it.

    Like

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