El Paso Children's Hospital pays price for fast growth with bankruptcy

Audits show the hospital at one point exceeded revenue projections but also spent a lot more than it brought in


El Paso Children's Hospital, which filed for bankruptcy in May, is paying price for fast growth and audits have shown the hospital at one point exceeded revenue projections but also spent a lot more than it brought in, according to an article on the KVIA website.

The County advised the board to slow the Children's Hospital's growth in order to keep up with revenue, but hospital officials said that Children's would not turn away patients. 

University Medical Center of El Paso is responsible for any upgrades, maintenance or future construction work at the Children's Hospital building, and collects rent from the facility. 

Children's currently pays 18 percent of UMC's total rent, because it takes up 18 percent of the campus. Children's is a new facility and more efficient than other campus buildings, but there are no meters for measure gas, electricity, and water to determine how much Children's is actually using. 

Children's is currently bringing in enough money to pay for services, drugs and cover its payroll. Fees for UMC services are building up 

Read the article.

 

 



June 11, 2015


Topic Area: Industry News


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