El Paso Children’s Hospital Is Paying A Quarter of a Million Dollars a Month To Consultants and it Might Mean Higher Property Taxes For You
That is what one El Paso County Commissioner called the more than quarter million dollars a month that one firm and the new Children's Hospital CEO are being paid to help get the hospital through bankruptcy.
That money, of course, is taxpayer money, and County Commissioner David Stout says it could be better used to pay off Children’s debt to University Medical Center. He also said if a handle isn't gotten on the money being paid to AlixPartners and new CEO Mark Herbers, you might be looking at a higher property tax bill from the County.
AlixPartners and Herbers, were hired in late February to keep Children's afloat. AlixPartners has already been paid a million dollars in fees since February, and because Children's won’t go to court on their bankruptcy case until October, if the case drags on, the firm could be paid over $2 million dollars in consulting and management fees.
The County is not happy with AlixPartners because they say they haven't "reduced expenses or provided a foundation for reorganization." Children's wouldn't answer any of the concerns the County had, but earlier this week, they were ordered by the bankruptcy judge in this case to keep a separate account to pay its lawyers and advisors so those payments could be tracked.