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Measure to help rural hospitals stay open passes Senate
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SANTA FE — A legislative effort to help rural hospitals keep their doors open is moving on to the other side of the Roundhouse after unanimously clearing the Senate on Thursday.
Sen. Liz Stefanics, D-Cerrillos, is a sponsor of Senate Bill 17, which would increase Medicaid payments to hospitals, favoring rural facilities.
Out of the state’s 28 rural hospitals, eight are at risk of closure and two could close their doors imminently, she said.
Stefanics explained her bill would have most hospitals in the state pay an assessment that would be deposited into a fund to ultimately increase Medicaid reimbursement in hospitals up to the average commercial rate. She said increased payments would also be tied to quality and performance bonuses.
Rural hospitals would pay 19% of the assessment and receive 40% of the disbursement of Medicaid payments, she said.
Stefanics said the dollars aren’t expected until March 2025.
Sen. Martin Hickey, D-Albuquerque, said he hopes hospitals use the money to pay physicians competitive wages and provide specialty care that’s not otherwise available.
“With my knowledge of 40 years of health care and costs and hospitals, this is desperately needed,” he said.
Sen. George Muñoz, D-Gallup, said he doesn’t want this to turn into corporate welfare, which Sen. Mark Moores, R-Albuquerque, echoed.
“I really hope that this money does stay in New Mexico,” Moores said.
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Stefanics said up to 25% could go out of state because of bulk purchasing.
“It is intended to assist our own hospitals,” she said.
