Children’s hospital spending

This came in from Helen Marshall:

The Times informed us last weekend that the bill to the county for legal services to monitor the battle between Children’s Hospital and UMC has amounted to $262,000 so far.  This is nothing of course compared to the $1.3 million charged to Children’s by its legal firm, and the $1.25 million for the consulting firm to run the hospital.  UMC fees have not yet been reported, although the Times said they would be available this week.

At least the county hired locally, and the hourly fee, at $350, is less than half that for Children’s ($675) fees, which is also money that leaves El Paso.  

Almost $3 million has been spent so far, and who knows what the total will be when the UMC fees are added.  And what did the sick children of El Paso get for that?  Nada, rien, niente, nichts, zero, zip, not so much as a new toy.  Given how well the adults are doing, maybe we should put the children in charge of the place?

5 Responses to Children’s hospital spending

  1. Helen Marshall says:

    Well, now we know, the Times reports that UMC has spent $1.9 million so far, surprise! on an outside law firm. Making it $4.7 million so far on this battle, and about $4.5 million of that leaving El Paso. And more to come (or go) as Reality Checker says.


    • Reality Checker says:

      UMC and the Times continue to try to portray that Children’s lost the battle and settled for the same terms UMC had offered originally. Nothing could be farther from the truth. Marty Schladen wrote today that there was skepticism that Children’s could win its claim that UMC had over-charged for goods and services, but during the settlement process UMC and Escobar went to great lengths and incurred even more legal fees to make certain that the details of those billing practices and fees were not made public. The Times could have filed a FOI request to get detailed invoices and then done a fair market price comparison, but it didn’t. For whatever reason, the Times reporting on the UMC and Children’s fiasco has been biased and one-sided. Schladen also wrote once again today that Children’s lost money from day one, but the Times has refused to dig into the reasons why it failed from the start or the fact that UMC and Valenti created Children’s original financial plan which laid the foundation for this massive failure and breach of public trust.


  2. Anonymous says:

    What the hell, it is just taxpayer money.


  3. Reality Checker says:

    This entire situation is not about doing the prudent thing. It is about a few people, led by Escobar and Valenti, getting their way. None of this made any sense from the beginning and Escobar and UMC were never transparent and honest about the root causes of this mess. Escobar and UMC complained loudly about the consulting fees charged by AlixPartners, yet now they have hired one of UMC’s consulting firms, Deloitte, who will be paid fees comparable to those charged by AlixPartners. When all is said and done, Deloitte’s fees might actually be higher.

    UMC has also agreed to pay up to $175,000 to the Witt/Kieffer search firm to find a new CEO. That’s a steep recruiting fee no matter how you slice it. Witt/Kieffer had an inside track because it also does a lot of recruiting for our local medical school.

    UMC and Team Escobar have never been financially responsible. Their hypocrisy is disgusting.


  4. Ya know a lot of folks have been trying to point this kind of waste out to both our County and City leaders, but the facts seem to fall on deaf ears, don’t they? This kind of waste is seriously undermining any good that might have come out of these ill conceived and poorly executed grandiose schemes.


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