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

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ORIGINAL DATE

LAST UPDATED

1/23/06

HB 218

SHORT TITLE Diabetes Education & Prevention Network

SB

ANALYST Lewis

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

950.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 219

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

Health Policy Commission (HPC)

Public Education Department (PED)

SUMMARY

FOR THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE

Synopsis of Bill

House Bill 218 appropriates $950,000 from the general fund to the Department of Health for ex-

penditure in fiscal years 2007 through 2010 to contract with a statewide nonprofit organization

involved in diabetes education and prevention efforts that will develop and support a network of

diabetes organizations and resources and will facilitate collaborative planning, implementation

and evaluation of diabetes education, prevention and management services.

FISCAL IMPLICATIONS

The appropriation of $950,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2010 shall revert

to the general fund.

House Bill 218 – Page

2

SIGNIFICANT ISSUES

In 2004 the Department of Health (DOH) conducted a statewide diabetes assessment, which

identified as the top priority the development of a statewide network to provide a coordinated

response. Such a network was also a priority of the Diabetes Advisory Council’s 2010 Strategic

Plan (www.diabetesnm.org).

According to the DOH, 42 percent of New Mexicans live in rural areas, and 32 of 33 counties

have areas that are medically underserved (www.HRSA.gov). Residents of these areas have lim-

ited access to local health resources and services, experience isolation and must often travel long

distances for specialized health care. As a result people with diabetes don’t always have access to

the preventive services and medical care they need in their communities, underscoring the need

for a coordinated response.

However, the appropriation in HB218 is not part of the DOH executive budget request.

The Health Policy Commission (HPC) observes that, according to the Diabetes Prevent and Con-

trol Program of the DOH, the annual cost to New Mexico for diabetes care is $1.1 Billion. This

cost includes care provided in hospitals, medical offices, nursing homes and home health care,

and includes the cost of amputations and treatment of end-stage renal disease with dialysis. It

does not include care and treatment provided by dental, eye, podiatric and dietary professionals,

costs associated with school-based and public health clinics, many vision products, research,

over-the counter medications and indirect expenditures associated with lost productivity and

earnings due to disability or death.

Direct medical costs for individuals with diabetes average $13,243 per year, versus $2,560 for

those without diabetes.

PERFORMANCE IMPLICATIONS

The Public Education Department (PED) notes that his bill could positively impact PED per-

formance measures that relate to the Governor’s Obesity Prevention initiative. Obesity preven-

tion initiatives, school attendance and graduation rates enhance student performance by increas-

ing the number of students performing at grade level in math and reading.

ADMINISTRATIVE IMPLICATIONS

DOH states that allocation of these funds would require a Request for Proposal (RFP) process.

At lease one FTE (Health Educator) would be needed to provide community outreach. The staff

person’s time would need to be dedicated to the tasks associated with the proposed legislation,

including community organizing and outreach development and monitoring of the contract, tech-

nical assistance, and evaluation.

ML/nt