UNM Health Center proposes $600M funding plan for new School of Medicine building

The Senate Committee on Tax, Business, and Transportation convened on March 11, 2025, to discuss a significant piece of legislation aimed at addressing healthcare workforce shortages in New Mexico. The meeting featured key testimonies and discussions surrounding the proposed funding mechanism for the replacement of the University of New Mexico (UNM) School of Medicine building.

The session began with an overview of the bill's provisions, which include establishing time limitations on the fund and sunset dates for the revenue stream. Senator Gonzales introduced Dr. Michael Richards, Executive Vice President of the UNM Health Science Center, who emphasized that the initiative is not merely about constructing a new building but is fundamentally about enhancing the healthcare workforce in the state.

Dr. Richards highlighted the stagnation in educational program growth over the past 10 to 15 years due to limitations in the clinical delivery system. However, he noted that the upcoming opening of a critical care tower presents a unique opportunity to expand educational programs. The goal is to double the size of health professional programs over the next decade, which would accommodate approximately 700 additional students annually.

The committee discussed the financial aspects of the project, with Dr. Richards indicating that the total cost is estimated at $600 million. He mentioned a capital appropriation of $30 million for the design of the facility, with a potential increase to $38 million based on updated estimates. The bill aims to create a funding stream for site preparation and enabling projects, with construction anticipated to begin in November 2026.

During the meeting, committee members expressed support for the legislation, recognizing its alignment with ongoing discussions about addressing healthcare shortages in New Mexico. The committee also noted the importance of exploring various funding sources, including House Bill 449, which pertains to higher education major projects.

The meeting concluded without opposition from the public, and the committee moved forward with discussions on the next steps for the proposed legislation. Overall, the session underscored the critical need for investment in healthcare education and infrastructure to meet the growing demands of the state's healthcare system.