Get out your checkbook

Let’s take a few moments to consider what will happen if our county hospital takes over the children’s hospital.

Firstly, we will pay for it.

As we wrote in County hospital losses their 2014 audited financial statements showed them losing $72 million in 2014.  Of that $60 million was recognition of the inability of the children’s hospital to pay its bills.

The other $12 million came from plain old operating losses.

If the county hospital takes over the children’s hospital they will need to add another $10 million to that number because they will no longer be able to charge rent.  They will also lose around another $10 million since they will not be able to charge for the other services they are contracted to perform for the children’s hospital.

We pay roughly $82 million in property taxes for the county hospital now.  Will they look to us for the other $32 million?

Will we have to fund pay raises for the hospital administrators since they will be burdened with so much more work?  Should we expect to have to pay bigger bonuses since they will tell us that they saved the day?

We deserve better

Brutus

 

9 Responses to Get out your checkbook

  1. Answers Anyone says:

    More questions, so what happens with the fraud issue and will the federal funds be repaid and any prosecutions?

    Like

  2. Jerry Kurtyka says:

    Time to consider defaulting on the bonds; the investors took a risk, too. That may take a voter initiative to do so. But, by degrading the county’s credit rating (and the resulting effect on the city’s) it could put some needed discipline on runaway public spending here. They just won’t be able to go to the bond markets to finance their field of dreams projects as easily.

    Now, that would take some courageous leadership. I wonder if anyone will step up to it or will they just call Elliot and ask him what to do?

    Like

    • Reality Checker says:

      Excellent idea. The bond rating that would really take a big hit is the one for the El Paso County Hospital District. It has a total of about $370 million in bond debt. Maybe some of UMC’s other expansion plans and the related spending should also be cancelled even if that requires a vote.

      Why did you drag Elliot into this? It seems a tad bit unfair to him.

      Like

  3. Rodney Fender says:

    Seems to be time to move out of El Paso before they tax me into poverty so I can be on their liberal dole.

    Like

  4. Haiduc says:

    I say you may THANK the most independent Board of the EPCH for their Leadership !

    Like

    • The Dark Knight says:

      You can THANK your UMC leadership who masterminded this empire-buidling plan and who put together the faulty financial pro forma for Children’s Hospital and the egregious financing scheme that was designed to enable UMC to profit off of CH.

      To borrow a quote, “Some men aren’t looking for anything logical. Some men can’t be negotiated with. Some men just want to watch the world burn.”

      UMC execs and the CH restructuring consultants and their multiple law firms are benefitting personally while failing to negotiate logically and in good faith. They prefer to watch our world and tax dollars burn. Some of them also helped start the fire. Some have thrown more fuel on the fire to make it burn longer.

      Its disingenuous and ridiculous for Escobar, the county commissioners, and the UMC board to respond the way they have after allowing the CH debt to build up for so long before addressing it. On one side they had CH, which is essentially a county entity, unable to pay its bills for years; on the other side they had UMC, a county entity that couldn’t collect what it says it is owed by and allowed tens of millions of dollars of obligations to accrue without taking action. Were they all asleep at the wheel or was an eventual takeover by UMC always the plan?

      CH is financially bankrupt, but the professionals and elected officials who are involved in this fiasco are morally and ethically bankrupt.

      Like

  5. Best question: “Will we have to fund pay raises for the hospital administrators since they will be burdened with so much more work?” And, of course, inquiring minds will want to know: How long will it take us to pay off the total cost of this disaster?

    Like

Leave a Reply -- you do not have to enter your email address

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: