Hospital Acquisitions and Higher Prices: The Impact on New Mexico’s Health Care Sector
New Mexico Takes Action to Protect Patients from Hospital Acquisitions
Hospital acquisitions are on the rise across the country, leading to concerns about higher prices and limited healthcare options for patients. In New Mexico, the issue is particularly pressing, with a new law aimed at curbing the negative impacts of these deals.
Last year, the only hospital in Otero County, Gerald Champion Regional Medical Center, merged with a Catholic nonprofit, sparking worries about restricted healthcare services in the community. Advocacy groups like Bold Futures and the ACLU of New Mexico raised concerns about the lack of community input in the merger and the potential cuts to services that the Catholic Church does not support.
New Mexico has been identified as a high-risk state for hospital acquisitions, with over two-thirds of hospitals operating in the red in the previous year. The state also faces a shortage of healthcare providers, particularly in rural areas, with one-third of counties lacking maternity care services.
State legislators, including Senator Katy Duhigg and Representative Reena Szczepanski, have taken action to address these concerns. They co-authored the Health Care Consolidation Oversight Act, which requires organizations seeking to merge to provide notice to the superintendent of insurance and demonstrate that the transaction will not harm patients through higher prices or limited services.
Senator Duhigg emphasized the importance of regulating hospital mergers to prevent monopolies and ensure transparency in healthcare transactions. While the current law is temporary, legislators are working on a more comprehensive version for next year’s legislative session.
The new law gives the state the ability to monitor hospital transactions and protect patients from potential harm. With the support of advocacy groups and community input, New Mexico is taking steps to safeguard healthcare access and affordability for all residents.