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Commission approves budget reconciliation to cover higher MDC medical contract costs
Summary
County finance staff said UNM's final FY26 proposal raised projected MDC medical contract costs by about $4 million (driven largely by travel nurses). Commissioners approved a reconciliation to appropriate $4.12 million using GRT and fund balance.
Bernalillo County approved a fiscal-year 2026 third-quarter budget reconciliation on May 12 that appropriates $4,121,583 to cover higher-than-expected costs for the MDC medical contract.
Deputy County Manager for Finance Shirley Reagan told the commission the final UNM Hospital budget proposal (received after the county adopted its budget) increased the county’s projected medical-contract expenses for MDC by roughly $4 million, primarily because of staffing and the use of traveling nurses rather than permanent hires.
"We received their final budget proposal for FY26 on July 1, 2025, which totaled $31,465,349," Reagan said, explaining that the earlier FY26 budget packet used preliminary numbers and that the county must now appropriate additional funds. The reconciliation drew $1,975,451 from equalization-distribution (gross receipts tax) revenue and $2,146,132 from the healthcare GRT fund balance.
County officials told commissioners they had negotiated and planned for a staffing analysis with UNMH to determine appropriate staffing levels and reduce reliance on traveling nurses, and that the study should be complete by late fall.
Commissioners voted to introduce and adopt the reconciliation (4–0). Several members stressed the need for longer-term fixes to staffing and program costs and for collaboration with UNM on a staffing study.
What happens next: The county will use the appropriated funds to cover FY26 contract needs and continue the staffing analysis with UNM to identify structural cost reductions.
