New Mexico researchers propose state healthcare spending database
A joint report by the University of New Mexico and New Mexico State University analyzes health spending in the state and calls for the creation of a statewide healthcare expenditure database, providing policymakers, providers, and the public with the clearest picture yet of where healthcare dollars go in New Mexico.
Friday, September 12, co-authors Kramer Winingham of NMSU’s Arrowhead Center and Suzan Reagan of UNM’s Bureau of Business and Economic Research explained to the Legislative Health and Human Services Committee why it is so important for New Mexico state to collect this data, as many other states already do.
“Without a comprehensive view of how dollars are spent across the entire system, we cannot design effective reforms that improve outcomes while controlling costs,” write Winingham and Reagan.
New Mexico Healthcare Expenditure Data Needs is the first analysis of its kind in the state, laying the foundation for data-driven policy reforms. For 1980 through the most current available data, Winingham and Reagan aggregate claims payments across all payers, prescription drug spending, insurance premiums, direct costs to patients such as copays and deductibles, provider costs such as wages and benefits, and capitation payments and provider incentives. It also measured healthcare industry contribution to GDP.
The report found that health care consumptions New Mexico grew from under $1 million in 1980 to over $17 billion in 2020 – far out-pacing economic growth and income. Between 1998 and 2020, healthcare expenditures jumped from 11 to 17 percent of New Mexico’s GDP, while per capita personal health spending rose from 15 to 19 percent. Since 2010, premiums and deductibles grew from 10–11.9 percent of median income to over 15 percent. New Mexico is now one of only five states exceeding this threshold.
Currently, hospital and nursing home services account for 63 percent while outpatient services account for 37 percent – much more lopsided than the national average of 53/47. The report indicates that prescription drugs, hospital inpatient care, and administrative overhead are growing at unsustainable rates.
A 2024 survey of New Mexican adults found that 75 percent experienced at least one healthcare affordability burden in the past year. Yet healthcare expenditure data in New Mexico is siloed among multiple agencies and payers, making it nearly impossible to compare trends or identify systemwide inefficiencies.
The report strongly recommends creating and maintaining an ongoing statewide healthcare expenditure database, modeled after similar systems in states like Massachusetts and Colorado.
“Developing a New Mexico healthcare expenditure database is not only feasible, it is essential to ensure accountability, transparency, and smarter use of limited resources,” the report concludes.