El Paso (Texas) Children's Hospital is contemplating whether to file for bankruptcy to avoid a takeover by University Medical Center of El Paso, according to an El Paso Times report.
This week, UMC gave El Paso Children's Hospital a "term sheet" that essentially laid out a plan to keep the struggling facility open. The children's hospital has until Feb. 27 to accept the offer.
If the children's hospital rejects the offer, UMC told the El Paso Times it will terminate contracted services it has been providing to the children's hospital but not receiving payment for.
To avoid the plan that UMC has proposed, El Paso Children's Hospital Chairwoman Rosemary Castillo said the hospital is considering filing for bankruptcy. However, she didn't provide many details about how seriously the hospital is considering the option. "We have discussed it. More than that I'm not willing to say," Ms. Castillo told the El Paso Times.
Behind the children's hospital's willingness to take such extreme measures is an ongoing dispute between it and UMC. They disagree on the amount owed by the children's hospital to UMC. Although UMC claims it is owed nearly $90 million, the children's hospital disputes that, according to the report.
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