According to a study conducted by the Private Equity Hospital Tracker, New Mexico has the highest proportion in the nation of private equity owned hospitals, at 38 percent.
Senate Majority Leader Peter Wirth said in an interview that when private equity purchases hospitals in the state, it decreases staff size and increases the incidence of sub-par medical care.
Enter House Bill 586, sponsored by House Majority Floor Leader, Reena Szczepanski, who said in a recent debate that the measure was crafted to help ensure that patients receive quality care and that facilities can remain solvent.
“ As we sought to find legislation that would strike the right balance between protecting the quality, the affordability, the accessibility of healthcare in our local communities while still allowing for hospitals to access the needed investment and opportunities that they are seeking out to ensure that they can continue to provide quality healthcare,” Szczepanski said.
HB-586 would add a new section to the New Mexico Insurance Code.
According to an analysis by the state’s Health Care Authority, the measure would require review of “proposed transactions that involve mergers, acquisitions, or other actions that change control of a hospital or certain health care provider organizations.”
In a House floor Debate on March 13, representative John Block, of Almagordo, raised concerns about the measure creating obstacles that will discourage outside investment in the state’s healthcare system.
“ I'm just wondering if this could deter some entities from even considering application or attempt to acquire another entity because there is even more burdensome regulations on this,” Block said.
Sczcepanski had earlier said that 40 other states in the U.S. have similar regulations and that much effort went into writing a New Mexico bill deliberately designed to avoid the scenario Block described.
The measure is awaiting a hearing on the Senate floor sometime this week.
Updated 3/24/25 with correct name of parent company of Lovelace Medical Center (Ardent Health Services).
