El Paso (Texas) Children's Hospital has filed for Chapter 11 bankruptcy after the collapse of a proposed deal with University Medical Center of El Paso, according to an El Paso Times report.
Here are four key points about the bankruptcy filing.
1. The filing comes one day after the UMC Board of Managers approved its final proposal with El Paso Children's Hospital. The proposed agreement calls for El Paso Children's Hospital to affiliate with UMC in order "to ensure the continuation of the mission and purpose of El Paso Children's Hospital."
2. In its filing, El Paso Children's Hospital said it owed creditors at least $11.4 million, of which $9.2 million is owed to Texas Tech University, according to the report. The report notes that the children's hospital is disputing $162,000 creditors say it owes, according to the court filing. El Paso Children's Hospital also claims to have assets of $50 million to $100 million.
3. By filing for bankruptcy, El Paso Children's Hospital aims to maintain an independent, free standing hospital and not go under the direction and financial control of UMC, a county hospital that serves adults, El Paso Children's Hospital CEO Mark Herbers said, according to the report.
4. According to Mr. Herbers, the filing will not impact patient care.
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