We understand that there is a deal between UMC and El Paso Children’s Hospital and that it will be confirmed next month. What we don’t understand is, why is El Paso Children’s Hospital still paying rent?? Yes, we’ve heard the rhetoric that it is for depreciation, but doesn’t the additional $150,000 that El Paso Children’s is paying cover that (we wrote about that here)? Also, if UMC is going to continue to DEMAND rent from the El Paso Children’s Hospital, why isn’t that money being used to pay down the $120 million bond? UMC has the ability to actually save the tax payers some money in interest by paying down the bond faster.
Clearly the County Commissioners believe the rent is required, they were intimately involved in the negotiations between UMC and El Paso Children’s Hospital. However, why are they not advocating for using that rent to pay down the bond and, thereby, saving the tax payers money in interest costs? Using the rent money to pay down the bond faster is one way in which they could ensure that the El Paso Children’s Hospital is not a burden on the El Paso Tax Payers.