New Mexico
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.
“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.
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.
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.
“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
Landlord AC ordinance, Rio Grande water levels, Spotty rain, New legislative office, New Mexico Motorfest
Monday’s Top Stories
Monday’s Five Facts
[1] ABQ City Councilor aims to bolster protections for renters amid unseasonable warmth – Albuquerque city councilor is looking to make sure city landlords are not only providing cooling systems, but also ensuring they actually work when they’re needed. City Councilor Tammy Fiebelkorn spearheaded an ordinance in December of 2024, requiring all Albuquerque rental properties to have a cooling system. Now, Fiebelkorn is taking it a step further, hoping to establish cooling system performance requirements. The ordinance is expected to be voted on in final action at Monday’s city council meeting.
[2] Rio Grande showing dry spots in Valencia County amid record-low snowpack – Portions of the Rio Grande are now seeing dry spots earlier than expected. Officials say the timing is not normal. In Valencia County, parts of the river are already running dry. Near the river crossing in Los Lunas, the river has open pockets. Further south, it is being reported as dry as well. There is a slight positive outlook for the monsoon season, with forecasters and officials predicting a strong season in the Middle Rio Grande Valley.
[3] Very spotty rainfall, warmer, & mostly calm week – Warmer weather will continue building in across the state throughout the upcoming week. A few isolated rain chances will return Monday in parts of New Mexico, but some of that rain may evaporate before reaching the ground. Temperatures will continue to increase through the middle of the week.
[4] NM representatives celebrate grand opening of new office with open house – A new state legislative office made its debut for representatives Eleanor Chavez and Yanira Gurrola. The new location is just one of the handful of new legislative offices now open across the state. They hosted a grand opening for the building that was open to the public. Representative Gurrola says it’s just one step towards modernizing the state’s legislature. The new office will allow residents to stay more connected to each representative.
[5] New Mexico Motorfest 2026 takes place in celebration of Route 66 Centennial – Another Route 66 celebration took place over the weekend and this one was all about cars. The New Mexico Motorfest happened at the Expo New Mexico racetrack. Over 300 vehicles from classic hot rods to lifted trucks were featured at the event. Some of the proceeds went to New Mexico veterans.
New Mexico
Los Alamos Public Schools Students Compete At 2026 New Mexico State Science & Engineering Fair
Students from Barranca Mesa Elementary, Mountain Elementary, Los Alamos Middle School, and Los Alamos High School at the 2026 New Mexico State Science & Engineering Fair at New Mexico Tech. Photo CourtesyLAPS
LAHS junior Tate Plohr and freshman Linus Plohr qualified to attend the 2026 Regeneron International Science and Engineering Fair in May in Phoenix, Ariz. Photo Courtesy LAPS
Los Alamos Middle School student Branden Keller was awarded the CO2 & Greenhouse Gas Scholarship in the amount of $2,000 at the 2026 New Mexico State Science & Engineering Fair. Photo Courtesy/LAPS
LAPS NEWS RELEASE
Twenty students from Barranca Mesa Elementary, Mountain Elementary, Los Alamos Middle School (LAMS) and Los Alamos High School (LAHS) competed, with several garnering awards at the 2026 New Mexico State Science and Engineering Fair held at New Mexico Tech in Socorro.
LAHS junior Tate Plohr qualified to attend the Regeneron International Science and Engineering Fair (ISEF) next month in Phoenix, Ariz. He was awarded the 3rd-place Grand Award. Freshman Linus Plohr qualified as an alternate and will also be attending the Regeneron ISEF.
Students who participated in the state competition include, from Barranca Mesa Elementary, Sydney Chen, Mary Beth Kelsey, Lily Neale, Aurora Roberts Voss and Henry Rodarte; and Glyn Lo and Ernest Maupin, Mountain Elementary.
Students from LAMS who competed include Evelyn Fobes, Mason Garcia, Andrew Gilbertson, James Junghans, Sequoya Ke, Brandon Keller, Nejan Liyanage and Daniel Yampolsky.
LAHS students Julia Neale, Linus Plohr, Tate Plohr, Lilia Veteva, Helena Welch and Kalliope Welch competed at the senior level.
2026 Award winners:
Category Awards – Junior Division
- Animal Science, Cellular & Molecular
- Biomedical & Health Science
- Honorable Mention: Sequoya Ke
- Embedded Systems, Math, Robotics, Software & Technology
- 2nd place: Nejan Liyanage
- Physics & Astronomy
- 1st place: Sydney Chen
- 2nd place: Mason Garcia
- Honorable Mention: Marybeth Kelsey
- Plant Science
Category Awards – Senior Division
- Behavioral & Social Science:
- Honorable Mention: Linus Plohr
- Earth & Environmental
- Honorable Mention: Lilia Viteva
- Embedded Systems, Math, Robotics, & System Software
- 3rd Place: Helena Welch and Kalliope Welch
- Physics & Astronomy
Grand Awards
- ISEF finalist 3rd place: Tate Plohr
- Brandon Keller received the CO2 & Greenhouse Gas Scholarship in the amount of $2,000. James Jungans and Marybeth Kelsey garnered Thermo Fisher Awards.
Other special award winners include:
- CO2 & Greenhouse Reduction Awards (Junior Division)
- Daniel Yampolsky, 2nd place, Earth & Environmental Sciences
- Sequoya Ke, 1st place, Biomedical & Health Science
- Brandon Keller, 1st place, Energy & Materials Science
- Andrew Gilbertson, 1st place, Physics & Astronomy
- CO2 & Greenhouse Gas Reduction Award (Senior Division)
- Lilia Viteva, 1st place, Earth & Environmental Sciences
- Office of Naval Research Award
- David Shortess Award
- New Mexico AVS Award
- Citadel Award
- Naval Research Award
- NM Network for Women in Science & Engineering Award
- Yale Science & Engineering Award
- Rose Baca Rivet Award
Related
Arizona State baseball will host a four-game homestand, beginning with New Mexico State on Wednesday, April 22.
The Sun Devils and Aggies faced each other in late March, with ASU winning 10-4. The two teams will meet for the final time at 6:35 p.m. at Phoenix Municipal Stadium.
ASU will then welcome Baylor on Friday, April 24, for a three-game series. The Sun Devils have yet to face the Bears this season, but ASU has been doing well so far and has been in the top 25 for four weeks.
Sophomore center fielder Landon Hairston earned Big 12 player of the week honors on April 13, after delivering five home runs in five games. His 10 runs in that stretch were tied for the second-most nationally and his 14 runs batted in were tied for third-most nationally. All nine of his hits went for extra bases, three more than any other player.
ASU’s series against Baylor will start at 6:35 p.m. for the first two games, followed by a 1:05 p.m. start on Sunday, April 26.
April 19
Softball at Houston, Cougar Softball Stadium, noon.
April 22
Baseball vs New Mexico State, Phoenix Municipal Stadium, 6:35 p.m.
April 23
Women’s golf at Big 12 Championship, Dallas Athletic Club, TBA.
Track and field at Penn Relays, Franklin Field, 1:22 p.m.
Beach volleyball at Big 12 Championship, Bear Down Beach, all day.
April 24
Baseball vs Baylor, Phoenix Municipal Stadium, 6:35 p.m.
Softball vs Texas Tech, Farrington Stadium, 7 p.m.
April 25
Lacrosse at Colorado, Prentup Field, 11 a.m.
Softball vs Texas Tech, Farrington Stadium, 3 p.m.
Baseball vs Baylor, Phoenix Municipal Stadium, 6:35 p.m.
Reach the reporter or send tips for stories at jenna.ortiz@arizonarepublic.com, as well as @jennarortiz on X.
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