A bankruptcy judge on Thursday strongly indicated that he'll order El Paso Children's Hospital and University Medical Center of El Paso back to mediation, The El Paso Times reported yesterday. In a dispute that was compared to conjoined twins threatening each other, the two El Paso hospitals made their first appearance in bankruptcy court on Thursday. Children's Hospital filed for chapter 11 protection on Tuesday after a round of negotiations over a significant debt between it and UMC broke down. Bankruptcy Judge H. Christopher Mott issued temporary orders to ensure that employees will continue to be paid and that the hospital will have enough cash to pay its bills and care for its patients. A series of subsequent hearings was scheduled for the next two months in Austin and El Paso. UMC has said that Children's Hospital owes it more than $90 million, which Children's Hospital disputes. Children's Hospital owes lesser amounts to about 50 other creditors. The relationship between the hospitals' governing boards is increasingly bitter and resignations on the Children's Hospital Board of Directors is leading some officials to say a settlement is key. County Judge Veronica Escobar fears that a protracted bankruptcy could end by eliminating debt and selling the hospital — which was built with a $120 million taxpayer-funded bond. Judge Mott said that it's important for the community to be able to follow proceedings. So in addition to the June 11 hearing, a hearing July 14 was scheduled for El Paso. Hearings for June 26 and July 30 have also been scheduled in Austin.
