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

SPONSOR Feldman

DATE TYPED 01/27/05 HB

SHORT TITLE UNM Medicine Combined Degree Program

SB 209

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$805.8

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the appropriation for the University of New Mexico in the General Appropriations

Act.

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Health Policy Commission (HPC)

New Mexico Department of Health (DOH)

No Response From

Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

Senate Bill 209 – Making an Appropriation to the University of New Mexico to Expand Enroll-

ment in the School of Medicine – appropriates $805,800 to the board of regents of the University

of New Mexico for expenditure in fiscal year 2006 to expand enrollment by approximately

twenty-five percent in the school of medicine through a combined bachelor's degree to medical

degree program to encourage enrollment by native New Mexicans and to promote retention of

graduates in the state. Any unexpended or unencumbered balance remaining at the end of FY06

shall revert to the general fund.

Senate Bill 209 -- Page 2

Significant Issues

HPC notes that New Mexico has a serious physician shortage in all counties except Bernalillo

and Los Alamos. Further, that all counties but these two are designated Health Professional

Shortage Areas by the federal government, with even Bernalillo County experiencing a shortage

of physicians in selected specialties. The Physician Supply in New Mexico study published by the

HPC in May 2003 observed: New Mexico has 169 physicians per 100,000 population compared

with a Health Resources Services Administration recommended number of 240 per 100,000

population.

DOH indicates that while the University of New Mexico, School of Medicine has initiated pro-

grams to encourage physicians to locate and practice in rural New Mexico, many graduates con-

tinue to choose to practice in the more metropolitan areas of New Mexico or other states. This

appropriation would fund the initiation of a program to recruit promising high school students

from rural areas, enroll them in a combined bachelor/MD degree program, and sustain their ties

with their community throughout their college and medical school tenure via summer intern-

ships. It is proposed that this would also reduce the exodus of promising native New Mexico

high school students to other state or private universities.

PERFORMANCE IMPLICATIONS

DOH suggests that this bill would fund the first year of an 8-year plan to recruit high school sen-

iors from rural areas and enroll them in the combined bachelor/MD degree program, while main-

taining their close ties to their rural communities through summer internships throughout their

college and medical school years. Phase One funding, the undergraduate phase, would provide

scholarships, recruitment activities, course development, tutoring and other student support. In

addition to expanding medical student slots, and recruiting rural area, junior and senior level high

school students for placement in a combined degree program.

FISCAL IMPLICATIONS

The Commission on Higher Education recommends $500,000 for this program in their FY06

budget proposal.

The appropriation of $805,800 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

ADMINISTRATIVE IMPLICATIONS

The University of New Mexico, Health Sciences Center will retain oversight of this program.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to the appropriation for UNM in the General Appropriations Act.

OTHER SUBSTANTIVE ISSUES

DOH indicates that the University of New Mexico, School of Medicine, is the only school offer-

Senate Bill 209 -- Page 3

ing an MD degree in New Mexico, and has adopted, as a part of its mission, the goal of increas-

ing recruitment and retention of physicians choosing rural practice in New Mexico. University

initiatives such as rural residency programs have met with some success, but, until recently, the

number of slots for medical students could not be increased because of federal requirements for

lab space per student.

HPC provides the following overview of New Mexico physician retention rates as drawn from

the UNM Location Report 2004 published by the School of Medicine:

•

1,302 physicians who received their MD and/or completed their residencies at the UNM

School of Medicine are licensed to practice in New Mexico. This represents 25 percent of

the School’s total number of MD recipients and former residents (N=5,273).

•

From 1994 to 2003, the number of UNM-trained physicians practicing in New Mexico

has grown from 819 to 1,302, a 63 percent increase. Of the 3,991 physicians licensed to

practice and in New Mexico, 33 percent are MD recipients and/or former residents of the

UNM School of Medicine.

However, HPC observes, data provided by the UNM School of Medicine shows that while the

number of UNM graduates increased 40 percent between 1994 and 1999, there has been only a 4

percent increase between the years 2000 and 2003.

BFW/yr