Legislation gives the state oversight of hospital acquisitions and corporate consolidation to protect patient care

Santa Fe, N.M. – Today, the House of Representatives voted 41-26 to advance legislation that would help protect affordable and accessible healthcare in hospitals across New Mexico.

House Bill 586 would give the state oversight of proposed mergers, and acquisitions of hospitals and some other healthcare facilities in New Mexico to ensure they do not negatively impact patient care or providers' working conditions. Under HB 586, the Health Care Authority (HCA) would review these transactions, determine whether or not they may proceed, and outline any specific conditions required to ensure healthcare quality, affordability, and access are maintained.

"As healthcare is increasingly impacted by large corporations and private equity, our communities are worried about fewer services, increasing health care costs, and poor working conditions for healthcare professionals," said lead sponsor House Majority Leader Reena Szczepanski (D-Santa Fe). "House Bill 586 increases transparency and accountability while giving the state authority to review mergers or buyouts so we can ensure quality care remains affordable and accessible for all New Mexicans."

New Mexico has the largest proportion of private equity-owned hospitals in the country. Until a temporary provision was passed last year with 2024's Senate Bill 15, New Mexico was one of only 11 states with no oversight over these transactions. The 2024 law expires on July 1, 2025.

Nationally, private equity-owned facilities have been linked to declining health outcomes, according to a recent Harvard study. Locally, New Mexicans have also seen increasing costs and denied insurance claims at Memorial Hospital in Las Cruces.

HB 586 now moves to the Senate. The bill is also sponsored by Rep. Christine Chandler (D-Los Alamos) and Senator Katy Duhigg (D-Albuquerque).

This session, House Democrats are pushing forward a slate of legislation to make life better and more affordable for New Mexicans, including efforts to improve access to healthcare.

The House has passed more than a dozen bills focused on affordability and access to critical services, including:

Delivering $15 billion in state and federal funding for Medicaid and other critical healthcare services (HB 2)
Strengthening New Mexico's healthcare workforce, particularly in high-demand fields, by incentivizing New Mexico alumni working in healthcare to return to the state (HB 5)
Improving food security with $10 million in annual funding for food banks (HB 2)
Directing $110 million to targeted housing development, including transitional housing, with a focus on Bernalillo and Doña Ana counties (HB 2)
Making $45.9 million available to housing providers to focus on specialized housing solutions and a strategic response to homelessness (HB 2)
Improving access to housing and protecting renters from discrimination (HB 339, 253, 453, 448)
Allowing public utilities to implement additional rate structures intended to reduce utility costs for low-income customers (HB 91)
Increasing property tax exemptions for veterans (HB 47)
Raising minimum pay for workers on publicly-supported projects (HB 6)
Stopping employers from taking credit card fees out of the wages of tipped workers (HB 22)
Raising minimum teacher salaries by $5,000 and providing a 4% average salary increase for public school personnel, while increasing funding for employee benefits so educators and school staff can keep more of what they earn (HB 2, 156)
Expanding access to the federal Public Service Loan Forgiveness (PSLF) program within New Mexico (HB 69)
Providing free high school equivalency testing and preparatory services (HB 167)
Provide a head start at financial independence for every child born in New Mexico, by establishing "baby bonds" that would generate interest throughout the individual's childhood and which could be used for education, housing, entrepreneurship costs, or investment opportunities when the child graduates from high school (HB 7)

Members of the public are welcome to attend floor sessions and committee meetings at the New Mexico Roundhouse, and can tune in virtually through the New Mexico Legislature's Webcasts tab. Public comment can also be provided in-person, and via phone or Zoom as directed on the daily schedule.