SENATE MEMORIAL 18

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Steve Komadina

A MEMORIAL

REQUESTING THE NEW MEXICO HEALTH POLICY COMMISSION TO CONVENE A TASK FORCE TO STUDY THE EFFECT OF ECONOMIC CREDENTIALING AND NON-COMPETE CLAUSES ON THE PRACTICE OF MEDICINE AND HEALTH CARE DELIVERY IN NEW MEXICO.

     WHEREAS, in order to have medical staff privileges to a hospital and to be reimbursed for the provision of care, physicians are required to undergo a process known as credentialing; and

     WHEREAS, credentialing involves obtaining and reviewing a health care professional's credentials, practice history and medical certification to assure professional competence and quality of care; and

     WHEREAS, the economics of health care sometimes provides an incentive for a hospital, group medical practice or other health care facilities to establish requirements unrelated to quality or professional competence in awarding medical staff privileges, such as ownership interests in competing medical facilities; and

     WHEREAS, it has become a common practice among hospitals, group medical practices and other health care facilities to require non-compete clauses in employment and other contracts between physicians and these facilities or practices; and

      WHEREAS, non-compete clauses commonly prohibit a physician from practicing medicine for the same patients or within a certain geographic area for a certain period of time upon termination of a contractual or employment relationship; and

     WHEREAS, quality care of patients, access to needed care on a timely basis, continuity and coordination of care needs, and the personal relationship between patients and their physicians is a community value that is imperative to preserve;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the New Mexico health policy commission be requested to convene a task force to study the effect of economic credentialing and non-compete clauses on the practice of medicine and health care delivery in New Mexico; and

     BE IT FURTHER RESOLVED that the task force be comprised of representatives of group medical practices; a statewide association representing the interests of physicians; a statewide association representing the interests of hospitals and health systems and the university of New Mexico health sciences center; and

     BE IT FURTHER RESOLVED that the task force study and make recommendations regarding conditions under which a non-compete clause is void, such as termination of a physician's employment; limitations on the duration of non-compete clauses for a period not to exceed two years; limitations on provisions to buy out of a non-compete clause; and the economic impact of other issues that are related to credentialing and non-compete clauses on physicians, group medical practices, hospitals and other health care facilities; and

     BE IT FURTHER RESOLVED that the findings and recommendations of the task force be presented to the appropriate interim legislative committee by November 2006; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the New Mexico health policy commission.

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