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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to HB356

SOURCES OF INFORMATION

Health Policy Commission

SUMMARY

Synopsis of Bill

House Bill 363 amends Section 24-1-5 NMSA 1978, subsection F to exclude any facility treating or caring for children, and an appeal of the final decision of the Department of Health regarding renewal of licensure is amended in subsection K to be pursuant to the provisions of Section 39-3-1.1 NMSA 1978.

Significant Issues

Subsection F of Section 24-1-5 NMSA currently grants renewal of a license without an inspection by the Department of Health to facilities that have received certification for participation in federal reimbursement programs and that have either been fully accredited or have partial accreditation by the Joint Commission on Accreditation of Health Care Organizations (JAHCO) or the American Osteopathic Association. The amendment would require the Department of Health to promptly inspect any health facility that treats or cares for children upon receipt of an application for license renewal.

FISCAL IMPLICATIONS

At the present time there are only 12 hospitals that are not JAHCO accredited. If this bill is enacted, an additional 52 hospitals would need annual inspection. Although the Department of Health has not provided data for this analysis, there would be incremental increases for surveyors, and related travel and administrative costs associated with this bill.

ADMINISTRATIVE IMPLICATIONS

There will be new administrative costs associated with this legislation. Federal participation in licensing and certification has been reduced in the recent past. It is unclear if federal participation for the licensure of these facilities is an eligible expenditure that can be reimbursed under existing federal guidelines.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

HB356 pertains to appeals of various administrative decisions including the licensing of facilities.

TECHNICAL ISSUES

There is confusion with regard to Section 12-8A-1 as noted in subsection K in the proposed legislation. However, this section cannot be found in current legislation and does not appear to exist.

OTHER SUBSTANTIVE ISSUES

The addition of language in the present statute relating to this issue shows a desire to protect children by insuring the facility treating the child has undergone a yearly inspection. This inspection also serves to protect the entire patient population. While hospitals are the prime concern under this legislation, there are probably other health facilities like specialized psychiatric facilities for children and adults who would fit this definition.

Subsection K in the proposed legislation should be changed to accurately represent subsection K in the current statute.

POSSIBLE QUESTIONS

1. Are there other alternatives to assuring the protection of children in these facilities?

MB/njw