HOUSE BILL 301

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Max Coll

FOR THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE

AN ACT

RELATING TO HEALTH FACILITIES; PROVIDING FOR OVERSIGHT OF HOSPITALS AND LONG-TERM CARE FACILITIES BY THE SECRETARY OF HEALTH; ENACTING A NEW SECTION OF THE PUBLIC HEALTH ACT.

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

     Section 1. Section 24-1-1 NMSA 1978 (being Laws 1973, Chapter 359, Section 1) is amended to read:

     "24-1-1. SHORT TITLE.--[Sections 1 through 22 of this act] Chapter 24, Article 1 NMSA 1978 may be cited as the "Public Health Act"."

     Section 2. A new section of the Public Health Act is enacted to read:

     "[NEW MATERIAL] CONDITIONS OF OBTAINING OR MAINTAINING LICENSURE.--

          A. A hospital or a long-term care facility, as a condition of obtaining or maintaining its license, shall provide information sufficient for the secretary to make a reasonable assessment of its financial viability and sustainability. Information provided to the secretary shall remain confidential and is exempt from the Inspection of Public Records Act. The hospital or long-term care facility shall provide this information to the secretary ninety days before the anticipated effective date of any of the following events:

                (1) a change in control of the ownership of the hospital or the long-term care facility;

                (2) a change in organizational control of the hospital or the long-term care facility; or

                (3) a proposed licensure, closure, disposition or acquisition of the hospital or the long-term care facility or its programs or services required by the department of health. 

          B. The secretary shall not oppose a hospital's or a long-term care facility's notice pursuant to Subsection A of this section unless the secretary finds sufficient evidence to conclude that the notice:

                (1) is not consistent with the department's strategic plan and is not outlined in the comprehensive strategic plan for health in New Mexico;

                (2) is contrary to the best interests of the state taken as a whole; or

                (3) will substantially impair:

                     (a) access to the hospital or the long-term care facility; or

                     (b) the quality of care delivered to patients in the hospital's or the long-term care facility's service area.

          C. The secretary may develop a process to prevent closed long-term care facility beds from being reopened and shall redirect funds toward community-based services.

          D. The secretary may convene the necessary parties, including state agencies or independent consultants, to develop a remedial plan that resolves any financial solvency or sustainability deficiencies of the hospital or the long-term care facility.

          E. Upon reviewing the written notice submitted by the hospital or the long-term care facility, the secretary may impose a fine or penalty as provided by department rule.

          F. The hospital or the long-term care facility may at any time request a hearing. The hearing shall be in accordance with procedures adopted by rule of the department and the Administrative Procedures Act.

          G. The parties to a hearing shall include the hospital or the long-term care facility, the secretary and the attorney general, who shall represent the interests of patients.

          H. For the purposes of this section:

                (1) "hospital" means a facility providing emergency or urgent care, inpatient medical care and nursing care for acute illness, injury, surgery or obstetrics. "Hospital" includes a facility licensed by the department as a critical access hospital, general hospital, long-term acute care hospital, psychiatric hospital, rehabilitation hospital, limited services hospital and special hospital; and

                (2) "long-term care facility" means a nursing home licensed by the department to provide intermediate or skilled nursing care."

     Section 3. TEMPORARY PROVISION--OVERSIGHT OF OTHER HEALTH FACILITIES.--The secretary of health shall evaluate the need to apply the provisions of Section 2 of this act to all other health facilities as defined in Section 24-1-2 NMSA 1978. The secretary shall report findings and recommendations to the legislative health and human services committee by October 1, 2004.

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