SM 9 All Payer Global Hospital Budget

 

Why NM Legislators Should Vote for SM 9

 

SM 9 All Payer Global Hospital Budget Task Force

 

 

Summary

Sponsored by Senator Ortiz y Pino, this Memorial seeks to perform a study of global hospital budgeting as an alternative to the traditional fee-for-service billing that is most prevalent in New Mexico. Global budgeting would even out the disparities between rural and urban hospital centers and would make health care more equitable overall. It aims to improve the patient experience of care, improve overall population health, and reduce the per capita cost of health care. The Memorial requests that a task force be formed to study the implementation of global hospital budgeting, with representatives from the Dept. of Health, Human Services Dept., NM Rural Hospital Network, advocacy groups from rural NM health communities, and the NM Hospital Association. The Task Force would report its finding to the Legislative Health & Human Services Interim Committee by Oct. 15, 2020.

History

This memorial is new this year, but is related to the Health Security Act (HSA), for which the Fiscal Analysis is currently underway. The HSA recommends global hospital budgeting, so the task force convened under this memorial would be complementary to the HSA Fiscal Analysis. Both would be reported in time for the 2021 long session of the legislature.

Why This Bill is Good for New Mexico

  • New Mexico is a state with large rural areas that are underserved for health care, and many NM hospitals in rural areas are facing financial difficulties.
  • Relieving the disparities between health care available in rural and urban areas would result in better overall health.
  • Global hospital budgeting would replace the fee-for-service model that rewards increased numbers of procedures and hospital admissions with a system that guarantees a stable revenue stream and avoids unnecessary procedures and hospitalizations.
  • Implemented in Maryland in 2014, global hospital budgeting has been shown to improve health care and reduce costs. Studies show decreased hospitalizations, decreased cost to the state, greater hospital investment in community health, and an improved bottom line for hospitals.
  • This memorial may be challenged by large urban hospital centers that rely on fee-for-service and may fear loss of revenue.

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