El Paso Children’s Hospital CEO Ray Dziesinski resigns

Aug. 16--The chief executive officer of the El Paso Children's Hospital, which is in the middle of a financial dispute with the University Medical Center of El Paso, is stepping down, a hospital spokeswoman said Friday.

Ray Dziesinski will take another job to be closer to family in Nashville, hospital spokeswoman Susie Byrd said.

In April, Dziesinski was hired on a six-month contract and he will stay for another 30 to 45 days to help with the transition of whoever is selected as the next CEO, Byrd said.

Dziesinski was previously the hospital's chief financial officer until he replaced former CEO Lawrence G. Duncan when Duncan resigned after less than four years as the hospital's first top executive.

Before joining El Paso Children's Hospital, Dziesinski was senior vice president and chief treasury officer of Children's Medical Center in Dallas from 2007 to 2013.

"Obviously, it's unfortunate and disappointing," El Paso County Judge Veronica Escobar said. "But the good news is the hospital is far more than just one man. It's the board, the great doctors and nurses and staff and parents and patients devoted to that organization."

The 10-story, 122-bed hospital opened in February 2012.

UMC officials have said that the children's hospital owes it more than $70 million and that UMC provides the children's hospital with $30 million in services. The amount is in dispute and the topic of negotiations. Children's hospital officials have said they owe about half of what UMC is claiming.

The children's hospital has admitted more than 3,000 patients and has had about 30,000 outpatient visits since October, officials have said.

In 2007, El Paso voters approved a $120 million bond issue to build the separately licensed children's hospital. It leases space for its facility from UMC, and also has contracts with UMC for shared services. The hospital was supposed to be self-sufficient, paying rent to UMC.

Hospital officials have said that the hospital encountered unforeseen changes and problems that included a reduction in Medicaid reimbursements for children's hospitals, Texas Gov. Rick Perry's rejection of federal Medicaid expansion benefits for the state and delays in collecting insurance reimbursements.

Jim Valenti, chief executive officer of UMC, said that Dziesinski's departure will not impact negotiations between the hospitals.

"I do know that we are working with both boards, the children's hospital board and the UMC board," Valenti said. "We are working together to find solutions."

In June, Dziesinski said that the children's hospital was not failing despite its financial difficulties.

Escobar said that the hospital's financial issues did not appear to be the reason Dziesinski resigned and that his departure appeared to be personal decision.

The boards of both hospitals are working to solve the dispute and there is a "renewed commitment by UMC to ensuring Children's success," she said.

Daniel Borunda may be reached at 546-6102.

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