SB 161 — ACUTE CARE FACILITIES SUBSIDIES

SENATEAN FINANCEACT COMMITTEERELATING SUBSTITUTETO FORHEALTH; SENATE BILL 161 56TH LEGISLATURE - STATEOFNEWMEXICO- SECOND SESSION , 2024 This document may incorporate amendments proposed by a committee, but not yet adopted, as well as amendments that have been adopted during the current legislative session.

TheCREATING documentA isTEMPORARY aPROGRAM toolTO toPROVIDE showSUBSIDIES amendmentsTO inCERTAIN contextELIGIBLE andHEALTH cannotCARE beFACILITIES usedTO forPROVIDE theCERTAIN purposeCARE ofAND addingSERVICES amendmentsTO toSICK legislation.AND INDIGENT PERSONS;

h AN ACT g o RELATING TO HEALTH;

HAFCºMAKING AN APPROPRIATION TO THE HEALTH t hr g e i k CARE AUTHORITY DEPARTMENT»HAFC HAFCºCREATING A TEMPORARY h r i s PROGRAM»HAFC TO PROVIDE SUBSIDIES TO CERTAIN ELIGIBLE HEALTH h , t, CARE FACILITIES TO HHHCºCOVER CERTAIN REVENUE LOSSES»HHHC e u g e b l e e h HHHCºPROVIDE CERTAIN CARE AND SERVICES TO SICK AND INDIGENT n d d i = = o h PERSONS»HHHC ;

l7 ] b ,d i a º e r i = r t e w d m a n o BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

dSECTION m1. :

bTEMPORARY ePROVISION--SUBSIDIES dTO sCERTAIN ºACUTE oCARE tFACILITIES nTO =COVER .227936.2AICREVENUE FebruaryLOSSES.-- 13,A. 2024 (9:01am) s k m e e a n e d r e l u [ A d SFC/SB 161 SECTION 1.

TEMPORARYAn PROVISION--SUBSIDIESeligible TOhealth CERTAINcare ACUTEfacility CAREmay FACILITIESapply TOannually COVERto REVENUEthe LOSSES.--health HHHCºA.care authority department for quarterly subsidies to provide to sick and indigent persons in New Mexico:

An(1) eligibleemergency healthmedical careservices; facility may apply annually to the health care authority department for quarterly subsidies to cover revenue losses incurred due to:

(1)(2) providinginpatient emergencyservices medicalrelated services;to maternal, child and family health;

(2)or providing(3) inpatient servicesunit relatedacute tocare. maternal, child and family health;

(3)B. paying year-on-year cost increases for medical malpractice premiums;

(4)An medicareeligible sequestration;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 health care authority department a report demonstrating that the subsidy has been used to provide such care and services.

(5)C. paying year-on-year cost increases for property insurance;

orAn (6)eligible providinghealth in-patientcare unitfacility acutethat care.»HHHChas HHHCºless A.than one hundred days of cash on hand in reserves shall provide the health care authority department with the SFC/SB 161 Page 1 following:

An eligible health care facility may apply h g annually to the health care authority department for quarterly o t hr subsidies to provide to sick and indigent persons in New g e i k Mexico:

h r i s h (1) emergency medical services;

, t, e u g (2) inpatient services related to maternal, e b l e e h child and family health;

or n d d i = = o h l ] b ,d (3) inpatient unit acute care.

i a º e r i = r B.

An eligible health care facility shall only use t e w d m a n o a subsidy for the provision of care and services pursuant to d m :

b e d s º o t n = .227936.2AIC February 13, 2024 (9:01am) s k m e - 2 - e a n e d r e l u [ A d SFC/SB 161 Subsection A of this section and shall submit annually to the health care authority department a report demonstrating that the subsidy has been used to provide such care and services.»HHHC HHHCº B.»HHHC HHHCºC.»HHHC An eligible health care facility that has less than one hundred days of cash on hand in reserves shall provide the health care authority department with the following:

hD. u HHHCº C.»HHHC HHHCºD.»HHHC An eligible health care » r t h facility that has more than one hundred days of cash on hand in g e l i reserves shall provide the health care authority department h r i s h , with the following:

eAn h t u g (1) upon initial application, a plan for the e b l e e , gh eligible health care facility tothat maintainhas atmore leastthan one hundred n d d i = = o h l ] b ,d days of cash on hand in reserves withoutshall cuttingprovide the serviceshealth icare aauthority ºdepartment rwith ethe rfollowing: = it provides and providing those services to all patients, t e w d m a n o d m :

b(1) rupon einitial tapplication, ºa oplan tfor nthe =eligible .227936.2AIChealth Februarycare 13,facility 2024to (9:01am)maintain sat kleast mone ehundred -days 3of -cash eon ahand nin ereserves dwithout rcutting ethe lservices uit [provides Aand dproviding SFC/SBthose 161services to all patients, regardless of insurance coverage;

HHHCºE. D.»HHHC HHHCºE.»HHHC An eligible health care facility that fails to provide HHHCº the annual report or the»HHHC quarterly updates to the health care authority department pursuant to HHHCº Paragraph (2) of Subsection B of this section or Paragraph (2) of Subsection C of»HHHC this section shall not receive additional subsidies.

HHHCºE.»HHHCAn HHHCºF.»HHHCeligible Overhealth care facility that fails to provide the courseannual ofreport fiscalor yearsthe 2025quarterly andupdates 2026,to the health care authority department pursuant to this section shall not providereceive moreadditional than:subsidies.

SFC/SB 161 Page 2 F.

Over the course of fiscal years 2025 and 2026, the health care authority department shall not provide more than:

(2) four million five hundred thirty-four h g thousand dollars ($4,534,000) to the Cibola general hospital;

o t hr (3) five million seven hundred thousand g e i k h r dollars ($5,700,000) to the Holy Cross hospital;

i s h (4) two million five hundred thousand dollars , t, e u g ($2,500,000) to the miners' Colfax medical center;

e b l e e h n d d i (5) five million seven hundred thousand = = o h l ] b ,d dollars ($5,700,000) to the Roosevelt general hospital;

i a º e r i = r (6) five million seven hundred thousand tdollars e($5,700,000) wto dRehoboth mMcKinley aChristian nhealth ocare dservices; m :

b e d s º o t n = .227936.2AIC February 13, 2024 (9:01am) s k m e - 4 - e a n e d r e l u [ A d SFC/SB 161 dollars ($5,700,000) to Rehoboth McKinley Christian health care services;

HHHCº (9) five million dollars ($5,000,000) to the Alta Vista regional hospital;»HHHC HHHCº (10)»HHHC HHHCº(9)»HHHC one million seven hundred thousand dollars ($1,700,000) to the Guadalupe county hospital;

HHHCº(11)»HHHC(10) HHHCº(10)»HHHC five million seven hundred thousand dollars ($5,700,000) to the Gila regional medical center;

or HHHCº(12)»HHHC(11) HHHCº(11)»HHHC one million eight hundred sixty-six SFC/SB 161 Page 3 thousand dollars ($1,866,000) to the h g Nor-Lea hospital district.

oG. t hr HHHCºF.»HHHC HHHCºG.»HHHC For the purposes of g e i k h r this section, "eligible health care facility" means the i s h hospitals listed in Subsection HHHCºE»HHHC HHHCºF»HHHC of , t, e u g this section.

eFor bthe lpurposes eof ethis hsection, n"eligible dhealth dcare ifacility" HAFCºSECTIONmeans 2.the hospitals listed in Subsection F of this section.