SB 1 — HEALTH CARE GRANTS & STABILIZATION

SENATE BILL 1 57TH LEGISLATURE - STATE OF NEWMEXICO - FIRST SPECIAL SESSION, 2025 INTRODUCED BY Elizabeth "Liz" Stefanics and Pat Woods and Elizabeth "Liz" Thomson and Anita Gonzales 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.

The document is a tool to show amendments in context and cannot be used for the purpose of adding amendments to legislation.

EXPANDING THE PERMISSIBLE USES OF THE RURAL HEALTH CARE DELIVERY FUND TO ALLOW FOR GRANTS TO HEALTH CARE h g PROVIDERS AND FACILITIES IN HIGH-NEEDS GEOGRAPHIC HEALTH o t h PROFESSIONAL SHORTAGE AREAS AND TO STABILIZE THE PROVISION OF h e i k EXISTING HEALTH CARE SERVICES;

SFCDECLARING MAKING AN hEMERGENCY. r i s APPROPRIATION;

SFC8 DECLARINGBE ANIT EMERGENCY.ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

hSECTION ,1. t e u g e b l BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

eSection e24A-1-17 hNMSA n1978 d(being dLaws i2024, SECTIONChapter 1.39, Section 38) is amended to read:

Section"24A-1-17. 24A-1-17 NMSA 1978 (being Laws 2024, = = o h l ] b d Chapter 39, Section 38) is amended to read:

iRURAL aHEALTH eCARE rDELIVERY iFUND--GRANTS-- =APPLICATIONS--AWARDS.-- rA. "24A-1-17.

RURAL HEALTH CARE DELIVERY FUND--GRANTS-- t e w d m a n o APPLICATIONS--AWARDS.-- d m :

b e d s o t n = .232332.9GLGAIC October 1, 2025 (4:30pm) s k m e e a n e d r e l u [ A d A.

(1) defray operating losses, including rural SB 1 Page 1 health care provider or rural health care facility start-up costs, incurred in providing inpatient, outpatient, primary, specialty or behavioral health care services to New Mexico residents;

or (2) stabilize the provision of existing health care services when those services are at risk of reduction or h closure.

g o C.

The authority may award a grant from the rural t h h e health care delivery fund to a rural health care provider or i k h r rural health care facility that is providing a new or expanded i s h health care service as approved by the authority that covers , t e u g operating losses for the new or expanded health care service, e b l e e h subject to the following conditions and limitations:

n d d i = = o h (1) the rural health care provider or rural l ] b d i a e health care facility meets state licensing requirements to r i = r t e w d provide health care services and is an enrolled medicaid mprovider athat nactively oserves dmedicaid mrecipients; :

b e d s o t n = .232332.9GLGAIC October 1, 2025 (4:30pm) s k m e - 2 - e a n e d r e l u [ A d provider that actively serves medicaid recipients;

(4) the rural health care provider or rural SB 1 Page 2 health care facility provides adequate cost data, as defined by rule of the authority, based on financial and statistical records that can be verified by qualified auditors and which data are based on an approved method of cost finding and the accrual basis of accounting and can be confirmed as having been delivered through review of claims;

h (a) a period of operation equivalent to g o the number of years grants are awarded;

and t h h e (b) actively serve medicaid recipients i k h r throughout the duration of the grant period;

and i s h (7) in prioritizing grant awards, the , t e u g authority shall consider the health needs of the state and the e b l e e h locality and the long-term sustainability of the new or n d d i = = o h expanded service.

l ] b d i a e SFC D.

Grants shall not be used for operations r i = r t e w d outside of New Mexico.

SFCE. m a n o d m :

bAs eused din sthis osection: t n = .232332.9GLGAIC October 1, 2025 (4:30pm) s k m e - 3 - e a n e d r e l u [ A d [C.] SFC D.

SFC(1) SFC"allowable E.costs" means necessary and proper costs defined by rule of the authority based on medicare reimbursement principles, including reasonable SB 1 Page 3 direct expenses, but not including general overhead and management fees paid to a parent corporation;

SFC As used in this section:

(1) "allowable costs" means necessary and proper costs defined by rule of the authority based on medicare reimbursement principles, including reasonable direct expenses, but not including general overhead and management fees paid to a parent corporation;

(5) "medicaid recipient" means a person whom the authority has determined to be eligible to receive h g medicaid-related services in the state;

o (6) "operating losses" means the projected t h h e difference between recognized revenue and allowable costs for a i k h r grant request period;

i s h (7) "recognized revenue" means operating , t e u g revenue, including revenue directly related to the rendering of e b l e e h patient care services and revenue from nonpatient care services n d d i = = o h to patients and persons other than patients;

the value of l ] b d i a e donated commodities;

distributions from r i = r t e w d the safety net care pool fund;

and distributions of federal mfunds; a n o d m :

bSB e1 dPage s4 o(8) t"rural nhealth =care .232332.9GLGAICfacility" Octobermeans 1,a 2025health (4:30pm)care sfacility klicensed min ethe -state 4that -provides einpatient aor noutpatient ephysical dor rbehavioral ehealth lservices uor [programmatic Aservices: d funds;

(8) "rural health care facility" means a health care facility licensed in the state that provides inpatient or outpatient physical or behavioral health services or programmatic services:

SFC or SFC (b) in a high-needs geographic health professional shortage area as designated by the United States health resources and services administration;

SFC or SFC SFC (c) in a tribally operated health care facility;

SFC (9) "rural health care provider" means an individual health professional licensed by the appropriate board, a medical or behavioral health ground transportation entity licensed by the public regulation commission or a health facility organization licensed by the authority to provide health care diagnosis and treatment of physical or behavioral h g health or programmatic services:

o t h (a) in a county that has a population of h e i k one hundred thousand or fewer according to the most recent h r i s federal decennial census;