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

SPONSOR Jennings

DATE TYPED 2-18-05

HB

SHORT TITLE NM Rehabilitation & Drug Treatment Center

SB 790

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$12,500.0

Non-Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the appropriation for Eastern New Mexico University 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 Received From

New Mexico Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

Senate Bill 790 – Making an Appropriation to the Board of Regents of Eastern New Mexico

University for Planning, Design, Construction and Improvements for the New Mexico Rehabili-

tation and Drug Treatment Center – appropriates $12,500,000 from the general fund to the Board

of Regents of Eastern New Mexico University for expenditure in FY06 to plan, design, construct

and improve a New Mexico rehabilitation and drug treatment center in Roswell. Any unex-

pended or unencumbered balance remaining at the end of FY06 shall revert to the general fund.

Senate Bill 790 -- Page 2

Significant Issues

DOH indicates that the New Mexico and Rehabilitation Center (NMRC) provides medical reha-

bilitation and chemical dependency services. It is the only state operated safety net medical re-

habilitation facility in New Mexico. As a result, the facility accepts and treats New Mexicans

from throughout the state, regardless of their ability to pay. The chemical dependency service is

one of three state-operated and funded facilities in New Mexico. NMRC’s chemical dependency

services focus primarily on the treatment needs of the people in the Southeastern area of the

state, although it accept patients in need of care from throughout the New Mexico.

DOH indicates that the New Mexico and Rehabilitation Center (NMRC) facility is in very poor

repair. In 2004 a site assessment was completed by two independent architectural consultants

who concluded that, in its present condition, NMRC would require over $10 million in repairs,

and a replacement cost of approximately $13 million.

HPC observes that perhaps the most significant aspect of this legislation is the element that pro-

vides the appropriation to ENMU rather than DOH – this in light of the fact that DOH currently

operates the Roswell NMRC.

This program was not included in the CHE’s 2005-2006 Higher Education Funding Recommen-

dation.

PERFORMANCE IMPLICATIONS:

DOH indicates that this legislation is consistent with the department’s strategic plan, program

area 5: Behavioral Health Services, Strategic Direction: Increase access and choice for behav-

ioral health services.

FISCAL IMPLICATIONS

The appropriation of $12,500,000 contained in this bill is for construction and is a non-recurring

expense to the general fund. Any unexpended or unencumbered balance remaining at the end of

FY06 shall revert to the general fund.

ADMINISTRATIVE IMPLICATIONS

DOH indicates that the existing NMRC hospital would be relocated to the new site.

Eastern New Mexico University will retain oversight of this program.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

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

Act.

OTHER SUBSTANTIVE ISSUES

DOH suggests that this legislation would permit NMRC to occupy a new building near the uni-

versity, which would promote a closer relationship to the Eastern New Mexico University (Ros-

Senate Bill 790 -- Page 3

well) health sciences programs. There would be the opportunity to support student experiences

in the hospital setting for the following programs: Nursing, Nursing Assistants, Occupational

Therapy, EMS, Respiratory Therapy, Medical Assistants, Limited Radiography, Dental Assis-

tant/Hygiene, Dental Residency (with UNM), phlebotomy, medical transcription, coding, and

pharmacy techs. In addition to providing for NMRC patient services, the new facility would also

provide for formal training experiences in health sciences to New Mexicans who would help to

staff critical shortages in this industry.

As background, HPC advises that the current NMRC in Roswell is a 41 bed, JCAHO accredited,

specialty hospital operated by the Department of Health. 21 of the beds are for medical rehabili-

tation services and the balance for addiction treatment. The 20-bed inpatient program has been

expanded to assist clients with co-occurring disorders who are suffering from addiction as well

as mental illness.

HPC also notes that the current building is aging and is in need of being modernized. And al-

though this legislation directs the monies to ENMU rather than DOH, the need for a more current

facility would be the case regardless of who operates the facility. Also, modalities for addiction

treatment have progressed over the last decade to be largely outpatient focused. The current fa-

cility, besides its age limitations, would need a significant amount of remodel or new construc-

tion to be current with 2005 program therapeutic requirements.

With respect to service demand, HPC indicates that the 2003 New Mexico Social Indicator Re-

port published by DOH showed that Chaves County had the 9th highest alcohol and drug related

death rate of New Mexico’s thirty-three counties. The rates measured are for 1999 to 2001 and

are age-adjusted rates per 100,000 population. Similarly, Chaves County had the 8th highest drug

related death rate and the 7th highest drug and alcohol related hospitalization rate in the state. e

HPC adds that demand for NMRC’s services would primarily come from Chaves County but

would also come from Lea, Eddy, Otero, Lincoln, Roosevelt, Curry and De Baca Counties. Hos-

pitalization rankings for those counties were 10th, 12th, 18th, 23rd, 30th, 31st and 32nd respec-

tively.

BFW/yr