SB 271 — PUBLIC PEACE, HEALTH, SAFETY & WELFARE

2/12/26 Proposed ___________ COMMITTEE SUBSTITUTE FOR SENATE BILL 271 57TH LEGISLATURE -STATEOFNEWMEXICO-- STATEOFNEWMEXICO- SECOND SESSION , 2026 INTRODUCED4 BY6 LindaDISCUSSION M.DRAFT 8 10 AN ACT RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE;

LópezPROHIBITING 6PRIVATE 8EQUITY 10GROUPS ANAND ACTHEDGE RELATINGFUNDS TOFROM INTERFERING WITH THE PUBLICPROFESSIONAL PEACE,JUDGMENT HEALTH,OF SAFETYHEALTH ANDCARE WELFARE.14 PROVIDERS.

1316 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

15 e t 17 wSECTION l1. n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .233139.1

[NEW MATERIAL ] PRIVATE EQUITY GROUP AND HEDGE w l n d 18 FUND OWNERSHIP IN HEALTH CARE.-- = = 19 A.

As used in this section:

a l i a e r 20 (1) "authority" means the health care a t m m 21 authority;

d r e 22 (2) "control" means the power to direct or c e s k 23 cause the direction of the management and policies of a health e a n b 24 care facility, whether directly or indirectly, including u [ through the ownership of voting securities, through licensing .233998.2 S__/SB 271 or franchise agreements or by contract other than a commercial contract for goods or nonmanagement services, unless the power is the result of an official position with or corporate office held by an individual;

(3) "health care facility" means a facility licensed by the authority to provide health care services in a health care setting.

"Health care facility" does not include:

(a) a hospital that is owned or operated by a local, state or federal government;

or (b) a health care organization owned or controlled by one or more health care providers who are natural persons that provide health care services in New Mexico;

(4) "health care provider" means a person certified, registered, licensed or otherwise authorized under state law to perform or provide health care services;

(5) "health care services" means the care, e e 17 prevention, diagnosis, treatment or relief of an illness, an e e n d 18 injury, a disease or other medical, dental, mental or = = l ] 19 behavioral health or substance use disorder condition, a l r i 20 including:

t e a t (a) inpatient, outpatient, habilitative, m m 21 e d rehabilitative, dental, palliative, home health, hospice or r e 22 c e r c 23 mental or behavioral health services provided by a health care e a n b 24 entity;

or u [ (b) the provision of prescription drugs .233998.2 - 2 - S__/SB 271 through retail and specialty pharmacies;

(6) "hedge fund" means a pool of funds by investors, including a pool of funds managed or controlled by private limited partnerships, if those investors or the management of that pool or private limited partnership employ investment strategies of any kind to earn a return on that pool of funds.

"Hedge fund" does not include:

(a) a hospital that is owned or operated by a local, state or federal government;

or (b) a health care organization owned or controlled by one or more health care providers who are natural persons that provide health care services in New Mexico;

(7) "own" or "ownership" means:

(a) direct or indirect possession of equity in the capital, stock or profits totaling more than five percent of an entity;

e e 17 (b) a controlling interest held by a e e n d 18 private equity group;

or = = l ] 19 (c) a controlling interest held by a a l r i 20 hedge fund;

t e a t (8) "person" means an individual, an m m 21 e d association, an organization, a partnership, a firm, a r e 22 c e r c 23 syndicate, a trust, a corporation or another legal entity;

and e a n b 24 (9) "private equity group" means an investor u [ or a group of investors who primarily engage in the raising or .233998.2 - 3 - S__/SB 271 returning of capital and that invests, develops or disposes of specified assets.

"Private equity group" does not include:

(a) a hospital that is owned or operated by a local, state or federal government;

or (b) a health care organization owned or controlled by one or more health care providers who are natural persons that provide health care services in New Mexico.

B.

A private equity group or hedge fund involved in any manner with a health care facility or health care provider in this state shall not:

(1) interfere with the professional judgment of a health care provider in making health care decisions, including:

(a) determining what diagnostic tests are appropriate for a particular condition;

(b) determining the need for referrals e e 17 to, or consultation with, another health care provider or e e n d 18 health care facility;

= = l ] 19 (c) being responsible for the ultimate a l r i 20 overall care of a patient, including determining treatment t e a t options available to the patient;

or m m 21 e d (d) determining how many patients a r e 22 c e r c 23 health care provider shall see in a given period of time or how e a n b 24 many hours a health care provider is required to work;

or u [ (2) exercise control over, or be delegated the .233998.2 - 4 - S__/SB 271 power to:

(a) own or otherwise determine the content of patient medical records;

(b) select, hire or fire health care providers or allied health professionals based, in whole or in part, on clinical competency or proficiency;

(c) set the parameters under which a health care provider is required to enter into contractual relationships with third-party payers;