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

SPONSOR Moore

ORIGINAL DATE

LAST UPDATED

1-20-06

HB 75

SHORT TITLE Quay and Union County Kidney Dialysis Units

SB

ANALYST Collard

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$400.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

Health Policy Commission (HPC)

SUMMARY

House Bill 75 appropriates $400 thousand from the general fund to the Department of Health for

the purpose of funding kidney dialysis units in Quay and Union counties.

FISCAL IMPLICATIONS

The appropriation of $400 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY07 shall revert to the

general fund.

SIGNIFICANT ISSUES

DOH indicates this bill attempts to address a need for dialysis patients in Quay and Union coun-

ties who currently have to travel 85 or more miles 2-3 times per week to urban centers in New

Mexico or Texas to receive appropriate treatment.

HPC research indicates the following about end state renal disease: according to DOH, approxi-

mately 1 in 11 adults in New Mexico has diabetes. Diabetes is the leading cause of end-stage

House Bill 75 – Page

2

renal disease (ESRD), or kidney failure. In 2004, diabetes accounted for about 60 percent of

new cases of ESRD. There were 354 new cases of ESRD among New Mexicans with diabetes.

A total of 1,358 patients with diabetes were in dialysis.

Regarding lack of kidney dialysis units, HPC notes due to the lack of kidney dialysis units cer-

tain residents of Quay and Union counties who require kidney dialysis must travel far distances

in order to receive treatment. There are approximately eight persons from Union County who

require kidney dialysis and must travel in order to receive treatment. The number of persons

from Quay County who require kidney dialysis and must travel to receive treatment is not avail-

able at this time.

Possible barriers to new kidney dialysis units, according to HPC, are certain dialysis equipment,

such as a dialysis machine, is needed to perform kidney dialysis, and persons with the necessary

skills to operate the equipment are needed. Certain qualifications are required of technicians per-

forming kidney dialysis. There may be a lack of persons qualified to perform kidney dialysis in

Quay and Union counties.

ADMINISTRATIVE IMPLICATIONS

DOH notes there may be administrative implications associated with procurement and state li-

censing and regulation. There would be administrative implications associated with the need for

specially trained staff and a clinic site designated for each of the units.

POSSIBLE QUESTIONS

1)

Does the equipment needed to carry out the provisions of this bill currently exist.

2)

Is the funding intended for capital outlay purchases or is it intended for operational

expenses, i.e – salaries, travel, etc.

3)

Will DOH require additional FTE to carry out the provisions of this bill.

KBC/mt