Amid cash flow issues, UMC votes to secure lines of credit

KDBC
Tuesday, July 8, 2014 - 7:30pm

Amid cash-flow issues, University Medical Center’s Board of Managers unanimously voted Tuesday to secure a line of credit in 2014 and 2015.

It is known as a Tax Anticipation Note and will provide temporary relief until property tax receipts come in between December 2014 and February 2015, and again in late 2015 into early 2016.

The lines of credit will cost UMC $150,000 in interest.  The 2014 Tax Anticipation Note totals $25 million and will be paid back by February 2015. UMC will pay $50,000 in interest. An additional line of credit for $35 million will be secured in 2015, to be paid back by February 2016 at a cost of approximately $100,000.

UMC said it expects to have less cash-on-hand this year and into next year partly because the investments made in the El Paso Children’s Hospital have not been repaid. The hospital also said the Texas Health and Human Services Department is six months behind in reimbursing Texas hospitals for care provided to patients who are unable or unwilling to pay for hospital services.

UMC said it is working with both institutions for payment.

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