Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR Gutierrez

ORIGINAL DATE

LAST UPDATED

02/23/07

HB 764

SHORT TITLE Move Health Policy Commission

SB

ANALYST Geisler

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY07

FY08

FY09 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

.01,

Minimal

Recurring General

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Health Policy Commission (HPC)

Department of Health (DOH)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

House Bill 764 proposes to move the New Mexico Health Policy Commission (HPC), currently

administratively attached to the Department of Finance and Administration (DFA), to the New

Mexico Department of Health (DOH) by creating an Office of Policy and Multicultural Health

(OPMH) within DOH. HB 764 proposes to move the HPC staff to DOH; replace the

commission with an advisory board, and provide for transfers of functions, personnel, property,

contracts and statutory references.

In addition, HB 764 adds the Aging and Long-Term Services Department and the Indian Affairs

Department to the membership of the Interagency Behavioral Health Purchasing Collaborative.

FISCAL IMPLICATIONS

HB 764 eliminates the budget of the HPC and transfers it to DOH. Elimination of the HPC

would provide some small savings by elimination of duplicative overhead costs.

House Bill 764 – Page

2

SIGNIFICANT ISSUES

Abolishing the Health Policy Commission and moving its functions to a cabinet agency would

appear to have the effect of eliminating an independent source of health related research and

information for policymakers.

According to DFA, the bill aims to reduce the duplication and streamline executive functions by

creating a single state health policy entity. Efficiencies are likely to result from the proposed

consolidation since DOH currently leads the state on many health policy issues and is one of the

major users of health data currently collected by HPC.

DOH provides

:

HB 764 is a bill introduced on behalf of the governor.

HB 764 will create a single state health policy entity within DOH, providing for an increased

ability to coordinate efforts, forward recommendations and synthesize policy. DOH and HPC

are currently required by statute to co-author the State’s Comprehensive Strategic Health Plan.

The integration of the HPC into DOH will result in increased efficiency related to data access,

analysis and timely description and dissemination of prioritized health-related policies and policy

recommendations. DOH possesses extensive expertise in the collection, analysis, and

dissemination of data and information. The health information system (HIS) maintained by the

HPC (including the Hospitalization Inpatient Discharge Data (HIDD), Geographic Data Access

System (GADS), Health Facility Charity Care and Capital Assets Database) contains crucial data

sources to inform DOH policy and strategic planning. The combination of epidemiological

expertise with HPC data systems will enhance the state’s ability to use health information to

decide, evaluate and implement health initiatives. For example, the combination of resources can

provide analysis of hospitalization and cost related to immunization, attempted suicide,

infectious disease, pregnancy, nonfatal injury, and substance use.

The evolution of a 9 member commission appointed by the Governor to an advisory board

consisting of four members appointed by the Governor, two members appointed by the Speaker

of the House of Representatives and two members appointed by the President Pro Tempore of

the Senate provides increased linkages among the Executive and Legislative branches of

government in the development and evaluation of health policy.

The Board will independently review health data and make recommendations related to health

policy to DOH. Annual reporting to the Legislative Finance Committee and the interim Health

and Human Services Committee on policy implementation and progress will be required.

HPC provides

:

The statute for the HPC (§ 9-7-11.1(C). NMSA 1978) states the New Mexico health policy

commission is to provide a forum for the discussion of complex and controversial health policy

and planning issues and for the creative exploration of ideas, issues and problems surrounding

health policy and planning, including the interrelations with education, the environment and

economic well-being.

House Bill 764 – Page

3

As such, the commission has provided independent research analyzing all sides of policy issues

and initiatives whose objective research and information could be viewed as factual. Proposed

language in HB 764 is silent with respect to being a “forum for the discussion of complex and

controversial health policy and planning issues" and to “serve as a neutral forum for the creative

and collaborative exploration of solutions to health information needs" as is the function of the

HPC today.

This proposed change in language limits the Health Policy Commission changing the scope to an

advisory board in comparison to a commission that monitors the implementation of state’s

health policy §9-7-11.2E NMSA 1978 and has investigatory powers §24-14A-4.2 NMSA 1978.

ADMINISTRATIVE IMPLICATIONS

HPC notes that the transition to the Department of Health is one which will require planning and

potentially additional fiscal resources, especially if the information systems activities associated

with the Hospital Inpatient Discharge Data base is moved. It is not clear from a statutory review

what the legal implications could be as it relates to the HIS (Health Information Systems) ACT

and the HIDD data base. Despite the fact that the “Commissioners" role would become advisory

in nature, the advantage to the state is the opportunity financially, for the agency under DOH, to

meets its many statutory duties which it is strained to meet today due to budget considerations.

GG/mt