SENATE BILL 161
56th legislature - STATE OF NEW MEXICO - second session, 2024
George K. Muñoz and Pat Woods
RELATING TO HEALTH; MAKING AN APPROPRIATION TO THE HEALTH CARE AUTHORITY DEPARTMENT TO PROVIDE SUBSIDIES TO CERTAIN ACUTE CARE FACILITIES TO COVER CERTAIN REVENUE LOSSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. TEMPORARY PROVISION--SUBSIDIES TO CERTAIN ACUTE CARE FACILITIES TO COVER REVENUE LOSSES.--
A. An independent not-for-profit or state- or county-owned acute care facility with fewer than thirty beds may apply annually to the health care authority department for quarterly subsidies to cover revenue losses incurred due to:
(1) providing emergency medical services;
(2) providing inpatient services related to maternal, child and family health;
(3) paying year-on-year cost increases for medical malpractice premiums;
(4) medicare sequestration;
(5) paying year-on-year cost increases for property insurance; or
(6) providing in-patient unit acute care.
B. In order to receive a subsidy, an acute care facility with a debt larger than one million dollars ($1,000,000) shall provide the health care authority department with the following:
(1) upon initial application, evidence that the acute care facility has less than one hundred days of cash on hand in reserves;
(2) upon initial application, a plan for the acute care facility to have one hundred days of cash on hand in reserves within five years without cutting the services it provides and providing those services to all patients, regardless of insurance coverage; and
(3) quarterly updates until the end of fiscal year 2026 regarding progress toward completing the plan pursuant to Paragraph (2) of this subsection.
C. An acute care facility that fails to provide quarterly updates to the health care authority department pursuant to Paragraph (3) of Subsection B of this section shall not receive additional subsidies.
D. The health care authority department shall not provide an acute care facility with more than three million dollars ($3,000,000) in subsidies per fiscal year.
E. For purposes of this section, "acute care facility" means a facility providing emergency or urgent care, inpatient medical care and nursing care for acute illness, injury, surgery or obstetrics.
SECTION 2. APPROPRIATION.--
A. Fifty million dollars ($50,000,000) is appropriated from the general fund to the health care authority department for expenditure in fiscal years 2025 and 2026 to provide quarterly subsidies to acute care facilities with fewer than thirty beds to cover certain revenue losses. Any unexpended or unencumbered balance remaining at the end of fiscal year 2026 shall revert to the general fund.
B. The health care authority department shall not spend more than twenty-five million dollars ($25,000,000) in fiscal year 2025.
- 3 -