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

SPONSOR Komadina

ORIGINAL DATE

LAST UPDATED

2/09/07

HB

SHORT TITLE Primary Care Clinic Electronic Records

SB 656

ANALYST Geisler

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$2,000.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY07

FY08

FY09 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$61.4

$61.4

$122.8 Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates: HB 693

Relates to HB 78, SB 91

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

SUMMARY

Synopsis of Bill

Senate Bill 656, for the Legislative Health and Human Services Committee, would appropriate

$2 million from the General Fund to the Department of Health (DOH) in FY 2008 to implement

electronic patient health records in primary care clinics eligible to receive funds under the Rural

Primary Health Care Act (RPHCA).

The funds are to assist these primary care clinics in developing analyzable, comprehensive

patient records, including laboratory and radiology test results. The new records systems are to

Senate Bill 656 – Page

2

export information or data to state, federal and regional registries and databases; improve

practitioner access to evidence-based protocols, decision support tools and best practices in

disease management and prevention programs; permit prescribing of medications with alerts for

adverse drug reactions; allow measurement of patient outcomes; involve patients in their health

care through personal health records and web portals; lead to reduction of medical errors; and

achieve cost savings through elimination of unnecessary or duplicative treatment and diagnostic

tests. Any unexpended or unencumbered balance remaining at the end of FY08 shall revert to

the general fund.

FISCAL IMPLICATIONS

DOH notes that the funds included in SB 656 to implement electronic medical records for rural

primary clinics are not part of the Governor’s executive budget recommendation. The executive

is supporting a $2 million special appropriation for telehealth which includes funding to create an

electronic medical records and health information exchange system.

The executive and Legislative Finance Committee recommendations for FY08 include

$10,330,700 from general funds and $2,328,000 from County Supported Medicaid Funds for

RPHCA contracts. The executive recommendation includes an additional $3.0 million

expansion for general clinic operations, bringing the total general fund recommended by the

Executive to $13,330,700.

DOH notes that the bill will have an operational impact on DOH. They estimate that one

additional FTE at a cost of $61,410.53 would be required to oversee this project.

SIGNIFICANT ISSUES

The RPHCA program, administered by DOH, provides financial support to 82 clinics statewide

through contracts with nonprofit organizations and governmental entities. In FY 06, these clinics

reported over 780,000 primary care patient visits.

The New Mexico Primary Care Association (NMPCA) has indicated, in presentations before

interim Legislative committees, that a total investment of $4 million over two fiscal years would

permit widespread implementation of these systems, supporting 200 providers in the primary

care center network. The proposed appropriation represents the first year’s portion of the

NMPCA request.

DUPLICATION AND RELATIONSHIP

SB 656 is duplicated by HB 693. SB 656 relates to HB 78/SB 91 which would appropriate

$3 million from the general fund to the DOH in FY 2008 pursuant to the Rural Primary Health

Care Act (RPHCA) to support operating costs associated with providing uncompensated care to

low income, rural and underserved New Mexicans and to maintain the state’s primary care safety

net.

GG/nt