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

SPONSOR Lopez

ORIGINAL DATE

LAST UPDATED

02/07/07

02/19/07 HB

SHORT TITLE Comprehensive Strategic Health Plan Changes

SB 409/aSPAC

ANALYST Geisler

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

Health Policy Commission (HPC)

SUMMARY

Synopsis of SPAC Amendment

The Senate Public Affairs Committee (SPAC) amendment to SB 409 clarifies that DOH will

publish a comprehensive strategic health plan by September, 1

st

2008 and every four years

thereafter, with updates every two years.

Synopsis of Original Bill

Senate Bill 409 would amend the Department of Health Act to require DOH and the Health

Policy Commission (HPC) to develop the Comprehensive Strategic Health Plan every four years,

with updates on even-numbered years. Currently the Act requires development every two years

with updates every year. The development and review of the plan requires input from numerous

public/private health care providers, the legislature, other state agencies involved in health care

issues, community advocates and the tribes and pueblo governments.

FISCAL IMPLICATIONS

None noted.

Senate Bill 409/aSPAC – Page

2

SIGNIFICANT ISSUES

DOH notes the current frequency of publication (every two years) hinders participation by

community members and the private sector due to the time commitments.

By moving from a 2 year cycle to a 4 year cycle, the plan will more closely reflect the priorities

of each Governor at the beginning of his/her term. In addition, the extended time frame for

development would allow more time to implement and monitor the state’s progress on the issues

highlighted in the plan.

If SB 409 passes, the plan publication would be as follows: Sept 1, 2008 Comprehensive Plan,

Sept 1, 2010 update, Sept 1, 2012 Comprehensive Plan, and in a similar patterned sequence in

subsequent years thereafter.

OTHER SUBSTANTIVE ISSUES

HPC provided background on the statewide comprehensive health plan:

The goal of the statewide comprehensive health plan is to articulate a flexible and dynamic

framework for state, local, and tribal partners to improve health, oral health, behavioral health,

and the health care system of New Mexico. By statute, the plan should have an emphasis on

prevention, personal responsibility, access and quality within a planning process that ensures the

inclusion of public participation and input, and that geographic representation is achieved.

As a result of passage of SB34 in 2004, the Department of Health, in conjunction with the health

policy commission and other state agencies have responsibility for reporting on thirteen specific

areas in the law. Plans were completed in 2004 and 2006 and are available on-line at

http://www.health.state.nm.us/pdf/NMCSHP.pdf).

Comprehensive planning across the public and private sectors has the potential to improve

performance of the entire health system and its component agencies, organizations, and

individuals. With an overall comprehensive plan, a strategic vision can be established to move

the health system investments towards prevention within the whole population. This might create

more cost effective interventions (associated with increased health outcomes and reduced costs).

A comprehensive plan would increase the focus on health determinants including action on

participation and integration of the health care system within the community.

The need for continuing a plan can best be demonstrated by New Mexico’s chronic and

continued low ranking on various health metrics. For example, United Health Foundation’s

annual ranking of states showed New Mexico health indicators to rank 40th in 2006 down from

38th in 2005, and usually in the bottom fifth of states since 1990. New Mexico’s access to

prenatal care in the first trimester has been either last or next to last for the past ten years. The

immunizations rates slipped in 2005 after a large improvement in 2004.

GG/mt