SENATE FINANCE COMMITTEE SUBSTITUTE FOR

SENATE BILL 161

56th legislature - STATE OF NEW MEXICO - second session, 2024

 

 

 

 

 

 

 

AN ACT

RELATING TO HEALTH; MAKING AN APPROPRIATION TO THE HEALTH CARE AUTHORITY DEPARTMENT TO PROVIDE SUBSIDIES TO CERTAIN ELIGIBLE HEALTH CARE FACILITIES TO COVER CERTAIN REVENUE LOSSES; PROVIDING FOR A DELAYED REPEAL.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. TEMPORARY PROVISION--SUBSIDIES TO CERTAIN ACUTE CARE FACILITIES TO COVER REVENUE LOSSES.--

          A. An eligible health care facility may apply annually to the health care authority department for quarterly subsidies to cover revenue losses incurred due to:

                (1) providing emergency medical services;

                (2) providing inpatient services related to maternal, child and family health;

                (3) paying year-on-year cost increases for medical malpractice premiums;

                (4) medicare sequestration;

                (5) paying year-on-year cost increases for property insurance; or

                (6) providing in-patient unit acute care.

          B. An eligible health care facility that has less than one hundred days of cash on hand in reserves shall provide the health care authority department with the following:

                (1) upon initial application, a plan for the eligible health care facility to have one hundred days of cash on hand in reserves within five years without cutting the services it provides and providing those services to all patients, regardless of insurance coverage; and

                (2) quarterly updates until the end of fiscal year 2026 regarding progress toward completing the plan pursuant to Paragraph (1) of this subsection.

          C. An eligible health care facility that has more than one hundred days of cash on hand in reserves shall provide the health care authority department with the following:

                (1) upon initial application, a plan for the eligible health care facility to maintain at least one hundred days of cash on hand in reserves without cutting the services it provides and providing those services to all patients, regardless of insurance coverage; and

                (2) quarterly updates until the end of fiscal

year 2026 regarding progress toward completing the plan pursuant to Paragraph (1) of this subsection.

          D. An eligible health care facility that fails to provide quarterly updates to the health care authority department pursuant to Paragraph (2) of Subsection B of this section or Paragraph (2) of Subsection C of this section shall not receive additional subsidies.

          E. Over the course of fiscal years 2025 and 2026, the health care authority department shall not provide more than:

                (1) three million two hundred thousand dollars ($3,200,000) to the Artesia general hospital;

                (2) four million five hundred thirty-four thousand dollars ($4,534,000) to the Cibola general hospital;

                (3) five million seven hundred thousand dollars ($5,700,000) to the Holy Cross hospital;

                (4) two million five hundred thousand dollars ($2,500,000) to the miners' Colfax medical center;

                (5) five million seven hundred thousand dollars ($5,700,000) to the Roosevelt general hospital;

                (6) five million seven hundred thousand dollars ($5,700,000) to Rehoboth McKinley Christian health care services;

                (7) two million seven hundred thousand dollars ($2,700,000) to the Sierra Vista hospital;

                (8) five million seven hundred thousand dollars ($5,700,000) to the Union county general hospital;

                (9) five million dollars ($5,000,000) to the Alta Vista regional hospital;

                (10) one million seven hundred thousand dollars ($1,700,000) to the Guadalupe county hospital;

                (11) five million seven hundred thousand dollars ($5,700,000) to the Gila regional medical center; or

                (12) one million eight hundred sixty-six thousand dollars ($1,866,000) to the Nor-Lea hospital district.

          F. For the purposes of this section, "eligible health care facility" means the hospitals listed in Subsection E of this section.

     SECTION 2. APPROPRIATION.--Fifty million dollars ($50,000,000) is appropriated from the general fund to the health care authority department for expenditure in fiscal years 2025 and 2026 to provide quarterly subsidies to eligible health care facilities to cover certain revenue losses. Any unexpended or unencumbered balance remaining at the end of fiscal year 2026 shall revert to the general fund.

     SECTION 3. DELAYED REPEAL.--This act is repealed effective July 1, 2026.

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