Our review of the legislative session reveals vital progress towards Health Security’s goals. Developing solutions to key drivers of rising health care costs will continue!
In addition, HB 546 passed the legislature with oversight provisions for health care mergers and acquisitions.
Cost Drivers Progress
Our immediate focus: developing those solutions to the causes of rising health care costs that are identified by the Cost Drivers Project.
Consultants are exploring systemic solutions to rising drug and hospital costs, as well as ways to simplify our complex, costly payment system, including some new voices:
The UNM Center on Social Policy is developing surveys to provide New Mexico specific information on how this complex system impacts health facilities, health professionals and patients.
The University of New Mexico’s Bureau of Business and Economic Research and New Mexico State’s Arrowhead Center are designing a state health expenditure database, needed to evaluate the effectiveness of cost driver solutions.
THIS FALL, reports from the consultants are expected to be presented to Legislative Health and Human Services and Legislative Finance Committee - just in time to make sure that continued cost driver funding can be included in HB 2 during the 30-day budget session. Some members of that committee may need to see the light on why this is such a good investment (see below).
Continued Funding:
We labored diligently during the session to secure the funds to continue the work of these and other consultants.
$1.4 million in funding is in HB 1, which has already been signed into law by the governor. We understand that this appropriation is primarily to be used for the work of the Legislative Health and Human Services Committee, including cost drivers. We are currently verifying this.
$1 million specifically for the cost drivers project was removed from the House-approved budget (HB2) by the Senate Finance Committee. We are still trying to find out how this happened.
Oversight of Health Care Consolidation Passes - Despite Serious Attacks!
1. SB 14 (Sen.Duhigg, Rep. Sczcepanski) - Authorizes the Office of the Superintendent of Insurance to oversee and approve health care mergers and acquisitions. As advocated by the Health Security Campaign, this bill included a whistleblower protection provision for health professionals, patients and their families.
Opposed by the NM Hospital Association, the NM Medical Society and the NM Chamber of Commerce as well as the Albuquerque Chamber of Commerce, it barely got through its first senate hearing in Senate Health and Public Affairs. (Vice-Chair Senator Hickey was not in support of this “complex” bill but approved a “no recommendation”.) In Senate Judiciary, Senators Cervantes and Maestas joined the Republicans to ensure that it would not pass. Opponents said it would discourage capital investment and infringe on the rights of enterprise.
Click here to read an excellent article from New Mexico Political Report on the bill's fate in Senate Judiciary Committee hearing.
2. HB 546 – “The Alternative” (Rep. Sczcepanski, Sen. Duhigg, Rep. Chandler, Chair of House Judiciary). Given the tragic demise of SB 14, HB 546 was quickly introduced (as an emergency bill). With strong House and Senate leadership support, it sped through both houses for approval (avoiding hearings in Senate Health and Public Affairs and the Senate Judiciary Committees). It is now waiting for the governor’s signature.
HB 546 amended the law created by SB 15 - legislation passed in 2024- which had a sunset clause.
Thus, by July 1, 2025, New Mexico would have had no oversight protections from the negative impacts of these health care mergers and acquisitions. It clearly was critical to pass oversight legislation this session.
Improvements were made to the original SB 15. Public notice and input as well as enforcement provisions were added. HB 546 also includes whistleblower protections — but only for health professionals, not patients. The Hospital Association did not oppose the legislation but declared its “neutrality.” Lovelace and Presbyterian followed suit.
The result? At least our state has some guardrails to protect us from future corporate takeovers. And, in upcoming sessions, changes can be made to the law.
A Comprehensive Whistleblower Bill Makes its Debut
3. HB 337 Health Care Whistleblower Protection Act (Rep. Herndon) This legislation provides broader protections than the one included in HB 546. Whistleblower status would apply to health professionals, patients and their families and the bill ensures confidentiality. It would include all current and future health facilities (excluding independent practices and clinics).
It passed its first committee, House Health and Human Services, along party lines, but was never heard in its second committee, House Judiciary.
Corporate Practice of Medicine Bill Raises Hackles
4. SB 450 Corporate Practice of Medicine Act (Sen. Sedillo-Lopez). This legislation prohibits health care entities from interfering with health professional clinical decisions.
It was assigned to Senate Health and Public Affairs. Vice-Chair Senator Hickey (D) joined the Republican members to vote to kill it.
At various public hearings, the Superintendent of Insurance has testified about the growing number of health professional complaints from those who work in corporate controlled settings - complaints about the lower quality of patient care.
This committee hearing generated strong opinions about the responsibility of those who control health facilities to maintain "economic viability" versus medical ethics.