CS/SB 161/a ACUTE CARE FACILITIES SUBSIDIES

Sen George K Munoz

Actions: [2] SCC/SHPAC/SFC-SCC-germane-SHPAC [4] DP-SFC [6] DNP-CS/DP [7] PASSED/S (37-0) [10] HHHC/HAFC-HHHC [14] DP/a-HAFC- DP/a [15] PASSED/H (66-0) [14] s/cncrd SGND BY GOV (Mar. 1) Ch. 44.

Scheduled: Not Scheduled

 SB161 provides $50,000,000 for subsidies for revenue losses for certain hospitals with less than thirty beds.  

 Synopsis: SB161Relating to health by making an appropriation to the Health Care Authority Department to provide subsidies to certain acute care facilities to cover certain revenue losstes.
Analysis: 
SB 161 allows for hospitals with less than thirty beds and that are an independent not-for-profit or state- or county-owned acute care facility, may apply to the Health Care Authority annually for, quarterly for subsidies to cover revenue losses. 
These losses may 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.
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: after an initial application the facility has less than 100 days of cash reserves on hand, a plan to have one hundred days of cash reserves with in five years with out cutting services and provides quarterly updates until the end of 2026 regarding progress for achieving the 100 days of cash reserves as stated above. 
The Health Care Authority shall not provide more that three million dollars per fiscal year to any facility. Any facility nor providing the quarterly updates will not receive any further subsidies.
Fifty million dollars ($50,000,000) is appropriated for the quarterly subsidies to the Health Care Authority for fiscal years 2025 and 2026. 
The Health Care Authority shall not expend more that twenty five million dollars ($25,000,000) in fiscal year 2025. 
An acute care facility, means a facility providing emergency or urgent care, inpatient medical care and nursing care for acute illness, injury, surgery or obstetrics.
 

 Amended February 12, 2024 in HHHC
HHHCa/SB161cs/a The House Health and Human Services Committee received a proposed amendment by Representative Reena Szczepanski to state that PROVIDE CERTAIN CARE AND SERVICES TO SICK AND INDIGENT PERSONS" which will replace "COVER CERTAIN REVENUE LOSSES”. 
Other new language will now state On page 1, strike lines 19 through 25 and on page 2, strikelines 1 through 5 and insert in lieu thereof:
 "A. An eligible health care facility may apply
annually to the health care authority department for quarterly
subsidies to provide to sick and indigent persons in New Mexico:
(1) emergency medical services;
(2) inpatient services related to maternal, child and
family health; or
(3) inpatient unit acute care.
B. An eligible health care facility shall only use a subsidy for the provision of care and services pursuant to Subsection A of this section and shall submit annually to the healthcare authority  has been used to provide such care and services."
On page 3 line 4, the term “provide” is replaced by the term “the annual report or the” which has to do with reporting requirements to the health care authority. 
On page 3, lines 5 and 6, the amendment strikes "Paragraph (2) of
Subsection B of this section or Paragraph (2) of Subsection C of” This has to do with a health care facility not complying and thus no longer eligible for a subsidy.
On page 4 lines 3 and 4 are struck which read: “(9) five million dollars ($5,000,000) to the Alta Vista regional hospital;”
Renumbering is required.
Finally, On page 4, line 18, strike "cover certain revenue losses"
and insert in lieu thereof "provide care and services to sick and
indigent persons pursuant to Section 1 of this act".



Amendment February13,2024 in HAFC
HAFCa/SB161cs/a/a: The House Appropriation and Finance Committee amended SB161cs/a/a by striking the lines 14 to 20  on page 4 which will strike the fifty million dollar appropriation. 
In addition, the synopsis language stating: “MAKING AN APPROPRIATION TO THE HEALTH CARE AUTHORITY “has been replaced with “CREATING A TEMPORARY PROGRAM”


 

 Committee Substitute February 05,2024 in SFC
SFCcs/SB161: The Senate Finance Committee enacted temporary provisions for acute care hospitals to cover revenue losses.
SB161cs covers revenue losses incurred for: (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.
"eligible health care facility" means the hospitals listed in Subsection E of this section meaning those listed below.
Over the course of fiscal years 2025 and 2026, the Health Care Authority Department shall not provide more than: (1) three million two hundred thousand dollars ($3,200,000) to the Artesia general hospital; (2) four million five hundred thirty-four thousand dollars ($4,534,000) to the Cibola general hospital; (3) five million seven hundred thousand dollars ($5,700,000) to the Holy Cross hospital; (4) two million five hundred thousand dollars ($2,500,000) to the miners' Colfax medical center; (5) five million seven hundred thousand dollars ($5,700,000) to the Roosevelt general hospital; (6) five million seven hundred thousand dollars ($5,700,000) to Rehoboth McKinley Christian health care services; (7) two million seven hundred thousand dollars ($2,700,000) to the Sierra Vista hospital; (8) five million seven hundred thousand dollars ($5,700,000) to the Union county general hospital; (9) five million dollars ($5,000,000) to the Alta Vista regional hospital; (10) one million seven hundred thousand dollars ($1,700,000) to the Guadalupe county hospital; (11) five million seven hundred thousand dollars ($5,700,000) to the Gila regional medical center; or (12) one million eight hundred sixty-six thousand dollars ($1,866,000) to the Nor-Lea hospital district.
A quarterly report is required for each hospital and for those that have less than one hundred days of cash on hand in reserve and  upon initial application, a provide a plan for the eligible health 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.
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 eligible health care facilities to cover certain revenue losses.
This Act is repealed effective July 1, 2026.