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

SPONSOR Heaton

DATE TYPED 3-4-05

HB 1038

SHORT TITLE County Indigent Hospital Claims Fund

SB

ANALYST Collard

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$0.1 Moderate Recurring County Indigent

Claims Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 1052

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

Aging and Long-Term Services Department (ALTSD)

SUMMARY

Synopsis of Bill

House Bill 1038 amends the Indigent Hospital and County Health Care Act (27-5-7.1 NMSA).

It would add, as an allowable use of the County Indigent Claims Fund, emergency and specialty

inpatient and outpatient care when that care is delivered in Class A counties by county hospitals

or other medical facilities operated and maintained by state educational institutions named in Ar-

ticle 12, Section 11 of the constitution of New Mexico. The bill allows coverage of care by

medical doctors, osteopathic physicians and other professional providers when that care is not

available within the county of residency or is necessary to address life-threatening injuries, ill-

nesses or disabilities of indigent residents of the county. Payment shall not be less than amounts

paid by the Human Services Department for Medicaid patients who are not enrolled in managed

care organizations.

House Bill 1038 -- Page 2

Significant Issues

DOH indicates this bill expands the permissible use of County Indigent Claims Fund in Class A

counties to include payments for emergency and specialty inpatient and outpatient care by a

county hospital. This would have direct impact on Bernalillo County, which is currently ex-

empted from such payments in the definitions of the Indigent Hospital and County Health Care

Act. The bill would also establish a minimum payment rate for services delivered in Class A

counties of no less than Medicaid fee-for-service rates.

FISCAL IMPLICATIONS

There is no appropriation contained in this bill, however the bill amends the claims fund and au-

thorizes the use of the county indigent funds to pay for services outside the county at facilities

maintained by state educational institutions.

DUPLICATION

House Bill 1038 duplicates Senate Bill 1052.

TECHNICAL ISSUES

DOH notes language referencing “county” in HB 1038 does not match the definition of “county”

in the current statute, 27-5-4.H. The statute reads: "county" means a county other than a class A

county which has a county hospital operated and maintained pursuant to a lease with a state

educational institution named in Article 12, Section 11 of the constitution of New Mexico.

DOH suggests on page 2, line 13: insert “human services” before “department”

OTHER SUBSTANTIVE ISSUES

DOH indicates the University of New Mexico Hospital (UNMH) has announced a budget short-

fall in the current year tied directly to uncompensated care for medically indigent patients. The

current shortfall exceeds $2 million.

The proposed provisions in this bill would address some of the indigent care needs of UNMH by

authorizing the use of Bernalillo County Indigent Hospital Claims Fund resources to pay for care

at a minimum rate of compensation. DOH indicates the bill language is permissive, and would

still require negotiation with Bernalillo County to allocate additional resources for UNMH use.

The bill would permit County Indigent Hospital Claims Funds in other counties to reimburse

UNMH for care received by their county residents at that facility.

KBC/yr