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Fewer beds and smaller earnings will hurt New Mexico hospitals as new state law goes into effect • Source New Mexico

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Fewer beds and smaller earnings will hurt New Mexico hospitals as new state law goes into effect • Source New Mexico


Smaller New Mexico hospitals will soon start missing out on government funding due to their fewer number of beds and smaller financial performance.

Senate Bill 17 signed into law earlier this year is set to go into effect this summer, redefining how the state calculates its portion of the Medicaid match for hospitals. The Healthcare Quality Delivery and Access Act establishes that 60% of the state’s match is based on “Medicaid service volume” or beds while 40% is based on performance, which is determined by the Health Care Authority based on reports from the hospitals.

“Ultimately, the bill aims to improve and increase access to healthcare services within the state. However, hospitals that do not have significant Medicaid service volume will not see much benefit,” reads a Legislative Finance Committee report.

According to the report, smaller hospitals with fewer beds care for fewer Medicaid patients, compared to bigger hospitals with a larger capacity to treat Medicaid patients.

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“Given the structure of the act, hospitals most at risk of down-sizing may not see much benefit. Generally speaking, hospitals that are not fiscally-challenged will receive the bulk of the financial aid based on bed count,” the report reads. “Ultimately, the act does not target hospitals that are financially struggling, and instead helps larger hospitals which are generally already profitable.”

The LFC report uses Rehoboth McKinley Christian Hospital in Gallup as an example. The smaller hospital lost around $20 million in 2022 and will receive about $6.5 million from the new law.

Rehoboth has made headlines recently by being ordered to pay over $100 million in medical malpractice damages. The civil case was filed in 2019 following a patient’s botched hernia surgery left them with life-long complications.

Gallup hospital says it is ‘indigent’ ahead of court order to find more than $100M 

“This will not cover the full extent of the losses that Rehoboth faces and they will still have a negative net margin of more than $13 million,” the LFC report reads.

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On the other hand, the larger Eastern New Mexico Medical Center reported a profit of about $80 million in 2022 and will receive over $37 million from the law. The report said if the Roswell hospital’s earnings remain on track, it could see over $117 million in combined profits and matched funding from the state.

Twelve New Mexico hospitals which qualify for funding under the new law reported net losses in 2022. Four of them will not receive enough state match funding to turn a profit. These include Rehoboth, Presbyterian Hospital in Albuquerque, Santa Fe Medical Center, and Encompass Health Rehabilitation Hospital of Albuquerque.

In Southern New Mexico, Artesia General Hospital reported a nearly $3 million loss in 2022 and is only projected to receive $5.6 million in match funding. The hospital will be profitable at $2.7 million, which is low compared to other larger hospitals in the region.

The report also noted that public funds made up about 70% of total hospital revenue in 2022 and this number is projected to reach 74% by 2025. These include funding from Medicaid, Medicare, Medicare Advantage and state subsidies.

“As the state continues to increase hospital subsidies, New Mexico is in a unique position to ensure hospitals use their revenue to improve patients’ outcomes and access to healthcare,” the report reads.

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During a Legislative Health & Human Services Committee meeting this week, Rep. Tara Lujan (D-Santa Fe) said the report raised several “red flags” for the lawmakers.

“We don’t always have all the answers when we come up with legislation. But I knew that we worked together with institutions, with legislators, with the executive office particularly on this bill,” Lujan said. “It looks like we need to make some adjustments.”

When asked by Rep. Pamelya Herndon (D-Albuquerque) about solutions the legislature should consider, LFC Analyst Allegra Hernandez said lawmakers need to make sure there are measures in place to hold hospitals accountable, and to improve care.

She added that the goal should be to make sure New Mexico hospitals are in a financially “healthier place” in five years, and that she does not believe Senate Bill 17, as it is currently written, will do that.

Hernandez offered one solution – the rural emergency hospital designation through Medicare. This designation was established through the Consolidated Appropriations Act of 2021 by Congress. The idea is that smaller, often rural hospitals would transition to become a rural emergency hospital and only offer emergency care to patients. This would limit access to broader services for patients seeking care.

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“The rural emergency designation possible by (Medicare) is one potential answer, although it’s not necessarily the most popular answer as it would close hospital beds and only allow for emergency services,” Hernandez said.

Hospitals that choose to transition to this designation would receive another 5% in Medicare funds and a monthly facility payment of about $272,000. According to the LFC report, Guadalupe County Hospital is the only hospital in the state that has chosen to make this transition.

“The state and hospitals will likely need to continue to make difficult decisions about when it is necessary to close hospitals or sections of hospitals,” Hernandez said. “(The rural emergency designation) is an option, although, as I said, it is controversial,” Hernandez said.

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New Mexico

New gay bar opens in Nob Hill

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New gay bar opens in Nob Hill


ALBUQUERQUE, N.M. – Vers Bar will soon open in Nob Hill, adding a new gay bar to the city as its owners say Albuquerque’s LGBTQ+ community wanted more space.

KOB 4 got a preview before the opening and spoke with owners Lucas Romero and Luke Rogers outside the new bar.

Romero and Rogers said Albuquerque right now has only two gay bars and one gay club, fewer than other cities its size and fewer than the city used to have.

“We put a lot of love and effort into this space and put a lot of love and effort into the community. And I think when you bring those two things together, I think we have something really special for Albuquerque,” Romero said.

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“Coming out of COVID. We realized that there was an opportunity or a need for people in the queer community to have a space, and so we hosted this mixer. We called it friends of Dorothy,” Rogers said.

They said those quarterly meetups at different bars across Albuquerque eventually drew close to 400 people and helped show demand for a permanent space.

“We were like, well, hold on. Is this our proof of concept for possibly a gay bar?” Romero said.

The couple found the former Albuquerque Distilling location on Central early last year and renovated it into a bar and lounge. They also leased the suite next door for a dance floor and event space.

They said social media posts about the project built interest beyond New Mexico, but they created Verse Bar with local customers in mind.

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“To many of us in the gay community, having a gay bar or a strong queer culture is really important.” Rogers said.

Verse Bar will officially open to the public next weekend. Romero and Rogers said they plan a soft opening this weekend to test equipment and make sure staff are ready.



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New Mexico

New Mexico’s ban on liquor ‘minis’ yields mixed results five years later

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New Mexico’s ban on liquor ‘minis’ yields mixed results five years later


POJOAQUE — Five years ago, the wall behind the cash registers at Kokoman Fine Wines & Liquor teemed with an extensive selection of miniature bottles of alcohol.

Though lawmakers banned the sale of so-called minis for off-site consumption under a sweeping liquor reform bill that took effect July 1, 2021, the wall still looks the same.

While Kokoman is complying with the law, small bottles of liquor continue to occupy the wall.

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DWI arrests rise

Lift for local spirits

‘We lost money’

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New Mexico

Hidden gem in Cloudcroft, New Mexico has best BBQ in US

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Hidden gem in Cloudcroft, New Mexico has best BBQ in US


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A Cloudcroft barbecue spot has gained national recognition for its slow-cooked, savory meats and generous sides.

Mad Jack’s Mountaintop Barbecue landed at No. 7 on Yelp’s latest list of the Top 100 BBQ restaurants and was the only New Mexico spot to make the list. To compile the list, Yelp identified businesses in the barbecue category, then ranked those spots based on the volume and ratings of reviews from the Yelp Elite Squad — which comprises adventurous locals.

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“High up in Cloudcroft, Mad Jack’s Mountaintop Barbecue brings Texas pitmaster tradition to 9,000 feet, serving up slow-smoked meats, hearty sides, and homemade desserts,” Yelp Elite Squad writes. “With picnic favorites like loaded potatoes, roasted corn, and hand-cut brisket sandwiches, this laid-back spot turns every meal into a mountain getaway worth savoring.”

It’s no surprise that Mad Jack’s Mountaintop Barbecue ranked high on the list, since James Jackson, a native of Lockhart, Texas, founded the restaurant. Lockhart is known as the “Barbecue Capital of Texas,” a title it received from the House of Representatives of the 76th Texas Legislature in 1999.

Jackson’s family bought a vacation home in Cloudcroft, and Mad Jack’s came to be.The line can stretch up to two hours, and people from all over the world, including plenty of Texans, come to taste what Mad Jack’s has to offer, according to its website.

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If you can’t make the trip out to Cloudcroft, you can still get a taste of Mad Jack’s by ordering its rubs and sauces online.

Natassia Paloma may be reached at npaloma@gannett.com, @NatassiaPaloma on X, natassia_paloma on Instagram, and Natassia Paloma on Facebook.



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