El Paso Children's Hospital says new Medicaid contracts will pay off $7 million deficit
Both University Medical Center and El Paso Children's Hospital presented their finances to the county Monday. The hospitals say their books are showing progress.
"Our census is up, more patients, more service lines are experiencing increases," Ryan Mielke, University Medical Center spokesperson, said.
"I think one of the things that we are doing is we continue to improve our services," President and CEO of El Paso Children’s Hospital Cindy Stout said.
But El Paso Children's still has some financial issues. As we reported, Children's owes $48 millionand has to pay $500,000 per month in rent to UMC.
The latest quarter shows Children's is in a $7 million deficit. Stout says cutting back on spending has stopped some of the financial bleeding.
But renegotiating current Medicaid contracts is helping the hospital earn more.
"We appreciate the different MCOs that came to the table and sat with us and understood the value of taking care of the children here in El Paso,” Stout said. “And that El Paso Children's Hospital needs to be paid and reimbursed for a fair amount for taking care of the children."
UMC and the county feel these new contracts, among other things, will help get Children's out of this financial hole.
"They're bringing aboard more people and more patients that enables them to increase that census, which will at the end of the day will improve their market share," Mielke said.
"By renegotiating those three contracts -- three major contracts -- where I think by next year, you'll see a $10 million swing. That's tremendous,” Commissioner Carlos Leon said. “I'm hoping and sure that they'll be back in the black by 2019."