When New Mexico’s rural hospitals called for help, our entire state came together – hospitals statewide, the Governor’s Office, the New Mexico Health Care Authority and legislators from both sides of the aisle - to pass the 2024 Health Care Delivery and Access Act.
New Mexico is at a pivotal moment as we struggle to address healthcare challenges facing our hardworking families especially when it comes to access to healthcare. Almost half of our residents are enrolled in Medicaid and, frankly, the Medicaid reimbursement rates to pay our doctors, nurses, and hospitals simply do not cover the costs of care. When costs aren’t covered, our entire system faces tough decisions about cuts and closures, is hamstrung when it comes to recruiting and retaining doctors and nurses, and people don’t get the care they need.
HDAA will help fix that for hospitals. The state law will assess a tax on hospitals—a larger tax on big hospitals—pool it, leverage those funds for a federal Medicaid match, then bring– about $1.5 billion in total funding – back to New Mexico to provide sustainable reimbursement to our state’s hospitals. Rural hospitals pay only 19% of the assessment and receive over 40% of the new funding.
There are a lot of good reasons why rural and urban hospitals unanimously championed and still support this law with the overwhelming, statewide support of our legislators. It’s designed with access to care at its core.
- HDAA is an equity based, statewide solution that will improve healthcare access and quality for all New Mexicans.
- Larger hospitals pay more than smaller and rural hospitals. This redistributes funding for the good of all patients.
- HDAA does not rely on state funds or New Mexico taxpayers.
- To receive full funding, hospitals must demonstrate clinical quality results.
- Hospitals must spend at least three-quarters of net new HDAA funds in New Mexico to support local communities and jobs.
- With better funded hospitals we can bring in more doctors and nurses and better support those we have.
