HOUSE BILL 306
56th legislature - STATE OF NEW MEXICO - second session, 2024
RELATING TO HOSPITALS; REQUIRING FINANCIAL TRANSPARENCY REPORTS FROM CORPORATIONS DOING BUSINESS IN NEW MEXICO AS HOSPITALS OR PROVIDERS OF MANAGEMENT SERVICES FOR HOSPITALS THAT SEEK THE BENEFIT OF MONETARY CAPS ON DAMAGES PROVIDED BY NEW MEXICO LAW; REQUIRING THE SUPERINTENDENT OF INSURANCE TO PUBLISH REPORTS; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of Chapter 59A, Article 2 NMSA 1978 is enacted to read:
"[NEW MATERIAL] FINANCIAL TRANSPARENCY--HOSPITAL-RELATED INFORMATION--PUBLICATION ON SUPERINTENDENT'S WEBSITE.--
A. As used in this section, "hospital" means a facility licensed as a hospital in this state that offers inpatient services, nursing or overnight care on a twenty-four-hour basis for diagnosing, treating and providing medical, psychological or surgical care for three or more separate persons who have a physical or mental illness, disease, injury or rehabilitative condition or are pregnant and may offer emergency services. "Hospital" includes a hospital's parent corporation, subsidiary corporations or affiliates if incorporated or registered in New Mexico; employees and locum tenens providing services at the hospital; and agency nurses providing services at the hospital. "Hospital" does not mean a person or entity protected pursuant to the Tort Claims Act or the Federal Tort Claims Act.
B. A corporation doing business in New Mexico as either a hospital or a provider of management services for a hospital that seeks the benefit of monetary caps on damages provided by New Mexico law shall file annually with the superintendent the following information as applicable:
(1) for the hospital, whether it is incorporated as a nonprofit or for-profit corporation and the address of its corporate headquarters;
(2) for the hospital's parent corporation, how and where it is incorporated and the address of its corporate headquarters;
(3) all subsidiary or affiliate companies of the parent corporation, where each is incorporated or registered and the address of each corporate headquarters;
(4) the parent corporation's ownership stake in the New Mexico hospital and any other subsidiary and affiliate companies and, if not wholly owned, the names and percentages of other owners;
(5) the name and address of the corporation that provides management services to the hospital, whether it is a nonprofit or for-profit organization and its relationship with the hospital's parent corporation or any other subsidiary or affiliated company of the parent corporation;
(6) the net worth of the parent corporation;
(7) the net worth of the management corporation;
(8) the net worth of each subsidiary and affiliate company of the parent corporation and the management corporation;
(9) the annual compensation, reported as salary and specific other compensation, of the chief executive officer, chief operating officer and chief financial officer and compensation or reimbursement for members of the boards of directors of the hospital, the parent corporation, the management corporation and each subsidiary and affiliate company reported;
(10) hospital-related medical groups by specialty owned by the hospital, the parent corporation, the management corporation or a subsidiary or affiliate of these;
(11) the percentage of health care providers by specialty practicing in hospital-related medical groups to the total number of health care providers by specialty practicing in the hospital's service area; and
(12) malpractice claims for the last ten years against the hospital, the hospital's medical group providers, the parent corporation, the management corporation and New Mexico subsidiaries and affiliates of those.
C. The superintendent shall publish the information collected by December 15, 2024 and by September 1 of each year thereafter. The information shall be posted as a searchable database on the superintendent's website. The superintendent may request and post other relevant information the superintendent deems necessary to provide full financial transparency to the public.
D. Failure of a corporation or other business entity subject to the provisions of this section to file the information required by this section shall bar the corporation or other business entity from claiming the benefits of any monetary caps on damages provided by New Mexico law."
SECTION 2. APPROPRIATION.--Fifty thousand dollars ($50,000) is appropriated from the general fund to the office of superintendent of insurance for expenditure in fiscal years 2024 and 2025 to collect, review and publish the hospital financial transparency reports required by Section 1 of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2025 shall revert to the general fund.
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