Feeling Unsecured

El Paso Children’s Hospital is NOT going to pay $48 million dollars.  In the deal that County Commissioners and UMC made with El Paso Children’s Hospital, “The joint plan calls for EPCH to repay UMC $15 million, which is a secured debt.” (http://www.kvia.com/news/el-paso-childrens-hospital-to-pay-back-umc-nearly-48-million-including-secured-and-unsecured-debt/35865096).  Secured debt means that it MUST be paid, although the timeline for this repayment has not been disclosed.  The other $33 million is unsecured debt.  In their news story, KVIA is correct, unsecured debt is paid last.  However, it is paid out of the money that is left over once all of the other creditors are paid.  So, if there is $100 left over, then that is split between all of the unsecured debt; if there is $0 then that is split.  Once that occurs, no other payments will EVER be made on that debt. Interesting that these few facts are not being explained to the public.  However, we predict a HUGE outcry come February of next year when the media finally realizes what the term ‘unsecured debt’ really means and then tries to spin it as El Paso Children’s Hospital trying to get out of their obligations.  What this means is that UMC and the County Commissioners negotiated the debt owed by EPCH to just $15 million.  Could it be because that was the amount that was ACTUALLY owed after all UMC’s over charges were removed?

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