Senate committee gives unanimous do-pass to Health Care Consolidation Oversight Act, moves review to Health Care Authority

A Senate committee voted 9-0 to give a do-pass recommendation to House Bill 586, the Health Care Consolidation Oversight Act, which would require state review of certain hospital ownership changes and acquisitions by provider organizations affiliated with insurers and transfer oversight from the Office of the Superintendent of Insurance to the New Mexico Health Care Authority.

The bill, described by the sponsor as a follow-up to a stopgap law passed last session that automatically repeals on 07/01/2025, adds public-comment and public-process requirements, enforcement authority and whistleblower protections. The sponsor told the committee the Health Care Authority (HCA) would evaluate whether a transaction would affect patient care, quality, affordability, accessibility or workforce conditions.

"This legislation applies to any change of control to a hospital or the acquisition of a health care practice by a health care provider organization that is affiliated with an insurer," the bill sponsor said during the committee hearing, outlining the transactions that would be subject to review.

Supporters who testified during the public-comment period said the bill preserves community voice and aims to protect access to care. "Keeping notifications and forums for community that is impacted by these transactions goes a long way in keeping the trust in relationships with health care entities," Kat Sanchez of Bold Futures New Mexico said. Diana Warren, a reproductive-rights and gender-equity attorney with the ACLU of New Mexico, said the ACLU supports the bill because it "includes a clear mechanism for community participation in the decision making process."

Industry groups also expressed support after negotiations. "We reflect those back on the work of the sponsors, and the many people who were involved, over the past year in finding what we believe is a reasonable balance," Troy Clark, president and CEO of the New Mexico Hospital Association, told the committee. Dan Najjar, representing Lovelace Health Systems and noting similar comments on behalf of Presbyterian, thanked sponsors and the administration for a year of negotiations.

Senator Figueroa asked why oversight is being moved from the Office of the Superintendent of Insurance to HCA. The sponsor replied that the HCA already licenses these facilities through its Division of Health Improvement and that hospitals requested the shift.

Committee members approved a motion for a do-pass recommendation. The motion was made by Senator O'Malley; the committee recorded a 9-0 vote in favor of do pass. During the hearing, the sponsor said the earlier stopgap measure will expire on 07/01/2025.

At the start of public comment the chair asked for a show of hands; committee staff counted nine people in the room in support and two people online who were in support. To accommodate time, four people were called to speak from the public-comment list; each was given one minute.

The bill’s text and committee substitute were discussed in committee but the hearing transcript does not specify further amendment language or the next formal legislative step. No committee directions to staff or formal implementation timeline were recorded during the hearing.