UMC, El Paso Children’s Hospital Agree to Terms
After months of failed negotiations and stinging accusations, the ongoing legal dispute between University Medical Center and the El Paso Children's Hospital could finally be coming to an end.
The El Paso Times reports UMC and EPCH have reached an agreement in principle in which the two parties will file a joint reorganization plan to the Bankruptcy Court, and Children's will drop its lawsuit alleging it had been defrauded by UMC. Details of the terms have not been made public, and won't be until after the plan has been submitted to the court.
On a related note, UMC CEO Jim Valenti informed UMC Board Chair Stephen DeGroat via letter that he will not seek an extension of his contract when it expires in May 2016. In announcing his departure, UMC said it has been Valenti’s “longtime” plan to leave after his current contract runs out.
According to ABC7, Valenti's exit could come at a high price to taxpayers. The news station says his contract entitles him to deferred compensation, which could be as much as $3 million.