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

SPONSOR Rainaldi

DATE TYPED 2/28/05

HB

SHORT TITLE Gallup Cancer Treatment Facility

SB 1013

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$1,000.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Department of Health (DOH)

SUMMARY

Synopsis of Bill

Senate Bill 1013 appropriates $1 million from the general fund to the Department of Finance and

Administration (DFA) for distribution to the City of Gallup to contract for services with a health

care facility specializing in cancer treatment.

Significant Issues

The Department of Health indicated that each year an average of 6,300 new cases of cancer are

diagnosed in New Mexico. Cancer is the second leading cause of death in the state, causing

about one in every five deaths. Current oncology services in Gallup include one medical on-

cologist at Rehoboth McKinley Medical Center who can provide chemotherapy infusions. There

is no radiation oncologist or radiation therapy, meaning that fully integrated oncologic therapy is

not available. There are no oncology services at Gallup Indian Medical Hospital. According to

the New Mexico Oncology Hematology (NMOH), the appropriation in SB1013 would go to the

City of Gallup to purchase land for a cancer treatment center that would most likely be owned by

Senate Bill 1013 -- Page 2

the McKinley Development Foundation (MDF), a 501c(3) not-for-profit organization. MDF

would lease the building to NMOH, who, in turn, would staff and equip the facility. The NMOH

business plan includes contracting with Medicaid, Medicare, Indian Health Services, and provid-

ing 20% of services to the uninsured at no cost.

PERFORMANCE IMPLICATIONS

SB1013 supports the DOH Strategic Plan: Program Area 2: Health Care Delivery – Public

Health Division, Strategic Direction: Improve access to health services. The bill has no direct

impact on the DFA performance plan.

FISCAL IMPLICATIONS

The appropriation of $1 million contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 would revert to the

general fund.

ALTERNATIVES

DFA suggested this bill should be administered through DOH. DFA does not have the same re-

sources that DOH may have regarding the licensing of these businesses. DOH may have infor-

mation regarding facilities that are able to carry out the specialized work involved with caring for

cancer patients.

DH/lg