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

SPONSOR Miera

DATE TYPED 2/26/05

HB 243

SHORT TITLE NM Health Sciences Center Compliance Program

SB

ANALYST Williams

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$672.3

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

Endorsed by the Legislative Health and Human Services Committee.

House Bill 243 appropriates $672.3 thousand from the general fund to the board of regents of the

University of New Mexico for a base adjustment to the New Mexico health sciences center com-

pliance program.

Significant Issues

According to the website for the University of New Mexico, Office of Government Affairs, the

number one priority of the institution is to secure improved funding for the Health Sciences Cen-

ter. This proposal was ranked as part of priority one of the nine research and public service ex-

pansion items submitted to the Commission on Higher Education.

The UNM – HSC at

www.unm.edu/~govrel/HSCLLegislativeBriefing.pdf

describes the compli-

ance program as follows:

“Due to increased government regulation of health care billing and services, as well as increased

scrutiny of research grants, academic health care institutions across the country have in-

vested increasing amounts in compliance programs. Operating under a compliance pro-

House Bill 243 -- Page 2

gram is now a necessity for a health care institution to assure itself of compliance with

legal obligations and simultaneously to minimize the likelihood of a government investi-

gation. The HSC compliance program oversees all three mission areas: academic, clini-

cal, and research. To date, the HSC has spent about $1 million implementing a compli-

ance program and is requesting recurring Legislative funding of $672,300 to help cover

the costs of this critical activity.”

FISCAL IMPLICATIONS

The appropriation of $672.3 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 would revert to

the general fund. The project was not included in the CHE request or the legislative or executive

budget recommendations.

ALTERNATIVES

CHE notes indirect cost revenues from federal contracts and grants are unrestricted in that the

governing board of the institution has the flexibility to choose which projects are supported with

these funds. Indirect costs might be used for projects such as that proposed in this bill.

AW/yr:lg