The Office of the Superintendent of Insurance has been working with the executive branch, health care stakeholders, and attorney Jane Wishner to draft a consolidation oversight bill to be introduced in the 2025 legislative session.
Between June and October, OSI held open public meetings in various locations and online on key topics that need to be addressed in a New Mexico health care consolidations bill. The Superintendent of Insurance also convened focus groups of stakeholders including consumer advocates, providers, insurers, and hospitals.
The Health Security for New Mexicans connected many advocates and providers to this process. Our Executive Director Mary Feldblum participated in all of the open public meetings and attended the consumer advocates focus groups.
Superintendent Alice Kane described these meetings as “an eye opener.” She described the many issues of concern voiced by community members and doctors. These include: lack of any notice about changes in ownership or control, discovering that certain services were no longer offered, referral requirements that forced patients to use physicians outside the local area, as well as the increasing need to travel outside the area. She also mentioned that there was reluctance on the part of doctors and others to be public about their concerns due to fear of retribution.
On October 10, the legislative Courts, Corrections and Justice Committee dedicated an entire day to discussing the corporate takeover of our medical services.
Sen. Katy Duhigg (D-Albuquerque), the senate sponsor of the proposed consolidations oversight bill, opened the morning session with the following warning.
"There is something unique in the history of health care that is taking place right now. Private equity and giant corporations are playing a rapidly growing role in our health care system in ways that have enormous consequences for patients and health professionals."
Duhigg, house co-sponsor Rep. Reena Sczceypanski (D-Santa Fe, Majority Leader), Kane and Wisher explained the need for this legislation and describe important provisions it would include to ensure strong oversight over future consolidations.
During the afternoon session, three academic experts presented an array of evidence regarding the negative impact of private equity firm acquisitions on health care costs and access to quality care.
Troy Clark, the President and CEO of the NM Hospital Association was given ample opportunity to comment on the presentations. His overall message: while important, oversight needs to be “measured.” In other words, corporate oversight must be limited in ways so that it does not discourage this outside much needed investment in our health care services.