44th legislature - STATE OF NEW MEXICO - second session, 2000

REQUESTING THE ATTORNEY GENERAL, THE DEPARTMENT OF HEALTH, THE HUMAN SERVICES DEPARTMENT AND THE NEW MEXICO HEALTH POLICY COMMISSION TO WORK COOPERATIVELY TO PRESERVE HEALTH CARE SERVICES AND PROTECT THE VALUE OF CHARITABLE ASSETS IN THE EVENT A NONPROFIT HOSPITAL CONVERTS TO A FOR-PROFIT HOSPITAL.

WHEREAS, the New Mexico legislature recognizes the importance of local hospitals as an integral part of the health care delivery system in this state; and

WHEREAS, the assets of a nonprofit hospital are charitable assets that have been dedicated to nonprofit purposes and should continue to meet the health needs of the people of this state; and

WHEREAS, nonprofit hospitals receive significant subsidies from the people of New Mexico through tax exemptions and donations of both money and in-kind services; and

WHEREAS, nonprofit hospitals in New Mexico may convert to for-profit status through merger with or acquisition by for-profit hospital chains and that may put at risk the charitable assets of those facilities as well as the continuation of the health care services they provide; and

WHEREAS, appropriate oversight by state agencies and officials with responsibilities for health care matters and charitable organizations, including the attorney general, the department of health, the human services department and the New Mexico health policy commission, will protect health care services and charitable assets in the event of conversion of nonprofit hospitals to for-profit status;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the attorney general, the department of health, the human services department and the New Mexico health policy commission work cooperatively and to the full extent of their authority under the law of the state to preserve health care services and to protect the full and fair value of charitable assets in the event that a nonprofit hospital converts to a for-profit hospital status; and

BE IT FURTHER RESOLVED that, in the event of conversion of a nonprofit hospital, the full value of the hospital's nonprofit assets be preserved in the nonprofit sector through distribution to one or more new or existing nonprofit organizations, and that such assets be used to meet the health needs of the people of New Mexico; and

BE IT FURTHER RESOLVED that the impact of a conversion of a nonprofit hospital on health care in an affected community should be examined before that nonprofit hospital converts to for-profit status, and that those important health care services continue following the conversion; and

BE IT FURTHER RESOLVED that the public affected by conversion of a nonprofit hospital to a for-profit hospital status be afforded opportunities to participate in the process of conversion and oversight by state agencies and officials through adequate opportunities for public input and access to information; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the attorney general, the secretary of health, the secretary of human services and the director of the New Mexico health policy commission.