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

SPONSOR Foley

ORIGINAL DATE

LAST UPDATED

01/31/07

HB 537

SHORT TITLE Health Care Professional Recruitment

SB

ANALYST Geisler

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$100.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 7, SB 14

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

Health Policy Commission (HPC)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

House Bill 537 would appropriate one hundred thousand dollars ($100,000) from the General

Fund to the Department of Health for expenditure in Fiscal Year 2009 to develop capacity to

address local health needs through recruitment and retention of health care professionals and by

training youth for health careers. Any unexpended balance remaining at the end of fiscal year

2009 would revert to the General Fund.

FISCAL IMPLICATIONS

The funding in HB 537 is not a part of DOH’s FY09 executive budget request. Both the

Legislative and the Executive base budget recommendations contain the following general fund

amounts for recruitment and retention of health care professionals: 1.) New Mexico Health

Services Corps - $581,700 2.) New Mexico Health Resources - $200,800. Both programs are

administered by the Office of Rural and Primary Health Care in the Health Systems Bureau.

House Bill 537 – Page

2

SIGNIFICANT ISSUES

Currently 32 of New Mexico’s 33 counties are designated by the Department of Health and

Human Services as Health Professional Shortage Areas (HPSAs) for Primary Medical, Dental

and Mental Health. One of the strategies for meeting health professional needs of the state is to

create a set of career ladders for New Mexico residents that would lead from secondary schools

through professional schools. ‘Homegrown’ health professionals have a higher likelihood of

remaining in their home state and meeting its needs.

It is relevant to note that the Health Resources and Services Administration (HRSA) predicts

New Mexico will not be able to fill 57% of its nursing requirements by 2020. Center for Nursing

Excellence data also show that it was predicted in 2000 that “40% of the national nurse

workforce would be over age 50 by 2010. NM exceeded that mark. Additional nurses will be

needed for the increased demand of a growing population (35% growth between 2000 and 2020

and a higher percentage of elderly (population over age 65 increasing by 74% between 2000 and

2020).

The proposed use of the appropriation to train youth for health careers is unclear. The

Department of Health does not currently support health professions education in schools, but the

appropriation might be used by the Office of School and Adolescent Health to develop a model

health curriculum for local school districts so that it includes health professions education. It

might be appropriate to consider changing the appropriation so that it goes to the Public

Education Department or other agency.

RELATIONSHIP

HB 537 relates to: SB 7, which proposes to appropriate $250,000 from the general fund to the

Board of Regents of New Mexico Highlands University to establish a demonstration and

research program that will better prepare undergraduate students from small universities for

successful entry into medical school or other related health fields; and SB 14, which proposes to

appropriate $1,756,600 from the General Fund to fund expanded health professional recruitment,

retention and educational opportunities.

OTHER SUBSTANTIVE ISSUES

PED notes that according to the Industry Employment & Projections’ data in New Mexico from

Base Year 2004 to projected year 2014:

Ambulatory Health Care Services ~ 19.1% growth

Health Care and Social Assistance ~ 20.2% growth

Hospitals ~ 3.1 growth

Nursing and Residential Care Facilitates ~ 31.9% growth

Social Assistance ~ 42.5 % growth.

PED’s Career and Technical Education Bureau has assisted schools in organizing around career

clusters through the federal Carl D. Perkins Career and Technical Education Act. In doing so,

participating schools have implemented career programs of study related to the national 16

career clusters initiative (www.careerclusters.org), which aligns to the Governor’s career cluster

initiative (http://www.workinnewmexico.gov). Under this framework, 15 secondary and 10 two-

House Bill 537 – Page

3

year college programs (community colleges and branch campuses) offer programs of study under

the Health Sciences Cluster, which includes the pathways of Therapeutic Services, Diagnostic

Services, Health Informatics, Support Services and Biotechnology Research and Development.

The State Workforce Investment Board has required each local workforce investment area to

develop priority business plans that drive one-stop training services. Within each of the business

plans are identified priority industries with high-growth, high-wage occupations that tie to New

Mexico career clusters and Perkins’ programs of study. Secondary schools are utilizing this

information and other labor market information as identified by economic development

initiatives when developing curricula to match local industry needs. Every local workforce

investment board has identified Health Services as their top priority industry.

ALTERNATIVES

DOH notes it might be preferable to make the proposed appropriation to a university health

professions training program or the Public Education Department.

GG/bb