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

SPONSOR Picraux

ORIGINAL DATE

LAST UPDATED

2/19/07

HB 896

SHORT TITLE Health Info Exchange Collaborative Network

SB

ANALYST Geisler

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$2,400.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates: SB 539

Relates to: Multiple (10) bills

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

Chief Information Officer (CIO)

SUMMARY

Synopsis of Bill

House Bill 896, for the Legislative Health and Human Services Committee, would appropriate

$2.4 million to the Department of Health (DOH) from the General Fund in FY08 to contract with

a nonprofit organization to complete the implementation of a health information exchange

collaborative network in Bernalillo and Taos counties, expand the health information exchange

network to: (1) serve rural and underserved communities outside these counties, (2) enhance

existing telehealth services, and (3) facilitate the Department of Health’s disease reporting and

communication with physicians. Any unencumbered or unexpended balances remaining at the

end of FY08 shall revert to the General Fund.

FISCAL IMPLICATIONS

DOH notes that their FY08 operating budget request includes an expansion request of $2 million

for telehealth activities. This funding was not recommended in either the executive or

House Bill 896 – Page

2

Legislative Finance Committee budget recommendations for DOH. The executive has

recommended $2 million as a special appropriation.

The CIO notes that additional dollars may be needed for the maintenance and support of the

health information exchange collaborative network.

SIGNIFICANT ISSUES

DOH notes that several efforts are underway to explore how to best implement a health

information exchange network in New Mexico. A functioning network would permit effective

exchange of patient information between health care providers, consistent with the restrictions of

HIPAA and other privacy requirements. The Telehealth Commission is considering several

alternatives but has not made specific recommendations about an implementation path.

RELATIONSHIP

HB 896 is duplicated by SB 539. HB 896 is related to SB 122, which would appropriate

$1,500,000 for implementation of electronic health record pilot projects in selected counties. HB

896 is also related to HB 871, which provides $500 thousand to DOH to coordinate and assist in

implementation of telemedicine programs and projects throughout the state through contracting

with a qualified non-profit and SB 180/HB 429, which provides $600,000 from the General Fund

to the DOH for expenditure in fiscal year 2008 to fund a telehealth program providing training,

education, case conferencing and clinical consultation targeted towards childhood diabetes and

obesity, developmental disabilities early intervention, mental health of children under 5 years

old, pediatric asthma and other pediatric specialties. HB 427/SB 456 amend the NM telehealth

act and expand the types of providers and sites for telehealth services. HB 428/SB 538 also

would amend the New Mexico Telehealth Act.

GG/csd