We forgot to ask how much

Our county judge and the folks over at our county hospital want us to believe that they now have the children’s hospital financial failure under control.

Never mind that they were the ones who set up this mess.

As part of the bankruptcy process (the one that both sides agreed to) there will be a new interim management team at the children’s hospital.

Now, according to an article in the Times, some county officials think that the new team will be paid too much.

Never mind that they helped pick the new management group.

Is this negligence or are they lying:

According to the Times:

Both DeGroat [the chair of the county hospital board] and Escobar [our county judge] agreed that while there was a consensus to hire Deloitte CRG because the company is already working with UMC, there was never a discussion on a cost amount.

“I don’t even know how much they are going to charge — $170,000 is a lot of money.  That’s way too much money. If we have anything to do with that, we are not going to approve $170,000 a month,” DeGroat said.

Escobar said she would not support the fee. She expects that the newly appointed board members will have a say on the contract and will try to lower it.

Doesn’t wash

How could they possibly agree to hire the firm without discussing cost? Am I mistaken in understanding that the chairman of the county hospital board is a financial advisor?

It doesn’t look like the long term situation is going to get any better.

We deserve better

Brutus

9 Responses to We forgot to ask how much

  1. One thing that isn’t being reported on is that, through the joint plan, the EPCH board cannot approve contracts over $200,000. So, the only way this contract gets approved is because the UMC board approved it.

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  2. Fed Up says:

    They think we are stupid and Escobar has said so in the past. Time to file complaints with the District Attorney. Instructions on how were on this blog just a few days ago.

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  3. […] like this article posted by Brutus at elpasospeak.com. He, like us, finds it either incredibly negligent or highly […]

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  4. Reality Checker says:

    Call it what it is. Deceitfulness and lies. Deloitte reportedly also does other work for UMC, which means the cards are once again being stacked.

    The reason Escobar and DeGroat are acting like they are opposed to the Deloitte fees is that they backed themselves into a corner. They had loudly proclaimed outrage at similar fees charged by the Children’s Hospital restructuring firm. Now that they’ve gone out and hired their boys at similar rates, false outrage is their only option.

    The UMC board and county court are not concerned about large sums being spent on outside fees as long as their friends and preferred firms are the ones get those big bucks. UMC’s insistence on hiring yet another restructuring and interim management team is also stupid because they lose the insitutional knowledge the previous interim CEO and restructuring firm had developed. They refuse to do that because they got their asses kicked by Herbers and Alix Partners. They want Deloitte because Deloitte will rubber stamp whatever UMC and Valenti want.

    This is business as usual. UMC and Escobar and the county commissioners are all still covering their asses because they know that UMC and Valenti created the Children’s Hospital structure that failed. They know the rent and fees charged by UMC were egregious and contributed to the CH bankruptcy. Escobar and the county court signed off on the original structure that enabled UMC to try to rape and pillage CH for the benefit of UMC and when the house of cards fell, they refused to own up to it. The bankruptcy settlement process was managed to make sure that a lot of the information about UMC fees was not discussed publicly in a court of law.

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  5. Ho hum. Nothing to see here. Business as usual at our inept, corrupt County.

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  6. mamboman3 says:

    The board is going to have a helluva time trying to lower that fee. That Escobar and De Groat didn’t know about this is a real bummer and smacks of negligence and ineptitude. This guy is going to suck us dry at $170,000 /month PLUS EXPENSES…….poor guy can’t pay his cell phone and travel and other expenses even with a $170,000 month salary. Who came up with this contract???

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  7. Y Que! says:

    A classic Hegelian Dialectic technique being used by the county.

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