Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L    I M P A C T    R E P O R T

 

 

 

SPONSOR

Garcia

DATE TYPED

1/30/04

HB

 

 

SHORT TITLE

Health Professional Recruitment

SB

229

 

 

ANALYST

Dunbar

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

$750.0

 

 

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to:

 

SB 261 that appropriates $75,000 to the DOH to expand recruitment efforts for health professionals hired by or through state agencies

 

HB 78 and SB 317 that appropriate $750,000 to the DOH for recruitment of health professionals including nurse professionals.

 

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Department of Health (DOH)

Health Policy Commission (HPC)

NM Public Education Department (NMPED)

 

SUMMARY

 

Synopsis of Bill

 

Senate Bill 229 appropriates $750,000 from the general fund to the Department of Health (DOH) for expenditure in fiscal year 2005 to contract with a qualified nonprofit health professional recruitment agency to recruit nurse practitioners, certified midwives, nurses and clinical nurse specialists statewide for employment by or through state agencies.

 

 

 

Significant Issues

 

SB229 supports recruitment of nurse practitioners, certified midwives, nurses and clinical nurse specialists statewide for employment by or through state agencies.  The DOH recently reported a 14% health professional vacancy rate; this rate is inclusive of the nursing vacancy rate.  SB229 assists the DOH to recruit nursing professionals in public health district offices and other settings, such as school-based health centers (SBHCs).

 

The shortage of health professionals and rising health care costs continues to place significant demands on the New Mexico (NM) health care system. Increasing the supply of nursing professionals improves access to medical services in rural and medically underserved areas.  Public Health District Offices benefit as well as DOH providers that employ nurse professionals in primary care clinics and school based health centers.

 

Currently 29 of the State’s 33 counties are designated as Health Professional Shortage Areas (HPSAs) for primary care by the federal Department of Health and Human Services. 

 

FISCAL IMPLICATIONS

 

The bill appropriates $750.0 in general fund on a recurring basis. Under the Rural Primary Health Care Act (RPHCA), $200,800 in general fund is currently provided to a qualified non-profit agency for the recruitment and retention of primary care providers to eligible, health professional shortage areas (HPSAs). However, this current funding addresses only a limited part of the need. The Rural Primary Health Care Act limits recruitment of health care professionals to rural areas of New Mexico.  SB261 would not limit funding to rural recruitment only.

 

ADMINISTRATIVE IMPLICATIONS

 

The DOH would administer the proposed appropriation with current administrative staff. 

 

The NMPED have in place FTEs who may assist in any required collaboration with DOH nursing staff.

 

TECHNICAL ISSUES

 

DOH points out that it is preferable to have the appropriation targeted to "a New Mexico nonprofit corporation with federal 501(c)(3) tax exempt status which has a Governing Board of Directors whose membership is representative of the geographic areas and ethnic populations in New Mexico and is comprised of both health care providers and consumers and which is not be a health care provider or association of health care providers."  This would be consistent with the statutory target of current recruitment activities under the Rural Primary Health Care Act (RPHCA).

 

OTHER SUBSTANTIVE ISSUES

 

In past studies conducted by the NM Health Policy Commission, the University of New Mexico and New Mexico Health Resources, Inc., the estimated number of nurse professionals needed in NM is 800-1500 nurses. 

 

New Mexico public schools have experienced a nursing shortage, as the current nurse/student ratio in New Mexico is one nurse for 888.56 students. This ratio is higher than the National Association of School Nurses and Healthy People 2010 recommendation of one nurse for every 750 students.

 

Current priority sites for NM health professional recruitment include agencies that are part of the health care safety net, such as community hospitals, State health facilities, public health offices and community primary care centers. Health care safety net agencies are generally located in HPSAs. 

 

AMENDMENTS

 

On lines 17 and 18, replace “a qualified nonprofit health professional recruitment agency” with "a New Mexico nonprofit corporation with federal 501(c)(3) tax exempt status which has a Governing Board of Directors whose membership is representative of the geographic areas and ethnic populations in New Mexico and is comprised of both health care providers and consumers and which is not be a health care provider or association of health care providers."

 

BD/yr:dm