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A state senator is proposing to end the funding mechanism created last year that helps keep New Mexicos smaller hospitals afloat.

Sen. Nancy Rodriguez, D-Santa Fe is sponsoring SB117, which would end the obligation for counties to contribute to the Safety Net Care Pool at the end of 2018. That fund helps 29 primarily rural hospitals cover the cost of indigent care.

A law passed in 2014 requires all counties to contribute the equivalent of a one-twelfth percent gross-receipts tax, totaling around $24 million, into the care pool fund. Bernalillo and Sandoval counties do not have to contribute because they already have a property tax to support indigent care at University of New Mexico hospitals in their areas.

The mechanism replaced the 20-year-old Sole Community Provider program, which funded the hospitals with supplemental federal Medicaid payments and contributions from counties.

New Mexico Hospital Association President and CEO Jeff Dye said such funds have been a critical component in keeping some smaller hospitals from closing.

Dye said the federal government provides $2.38 for every dollar counties and the state contribute. He is also concerned about the level of state funding. If money isnt forthcoming from within New Mexico, federal dollars would be left on the table.

This is the lifeblood for keeping our hospitals afloat, Dye said.

An additional 185,000 New Mexicans received coverage through a Medicaid expansion in 2014, reducing the amount of uncompensated care, but Dye said its still unclear how that will play out in the long term. He said his organization views the proposed sunset date of 2018 as premature.

The changes in uncompensated care funding are new, Dye said. Were only in the second year of analysis in how this (the Safety Net Care Pool funding mechanism) works.

Continue reading here:
Hospital fund pool targeted

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