Think tank proposes creation of new $2 billion fund to help solve NM's health care worker shortage
Sep. 22—SANTA FE — The creation of a new $2 billion permanent fund could allow New Mexico to alleviate its longstanding health care worker shortage, under a new plan proposed by a Santa Fe-based think tank.
Specifically, the money generated annually by such a fund could allow the state to increase Medicaid reimbursement rates, expand a student loan repayment program, repeal a tax on medical services and overhaul the state's medical malpractice act.
Those are among the 10 different policy proposals for addressing the state's health care worker shortage pushed by Think New Mexico in its new report. Most, if not all, of the ideas would require legislative approval.
"Every New Mexican who has struggled to get an appointment with a health care provider can speak to the urgency of this crisis," said Fred Nathan, the group's director.
New Mexico has struggled for years to address health care staffing issues, with an average shortage of 5,000 health care workers statewide over the past several years, according to Legislative Finance Committee data.
In an attempt to bolster the ranks of health care providers, Gov. Michelle Lujan Grisham's administration recently launched a campaign using billboards and newspaper ads to try to lure Texas doctors and nurses to New Mexico.
In addition, the state has created a student loan forgiveness program and appropriated more funding for health care faculty endowments at state colleges and universities.
However, New Mexico is still projected to be short of industry benchmarks by 2,118 doctors as of 2030, according to a Cicero Institute report from this year.
The state also has the nation's oldest physician workforce, with almost 40% of the state's doctors aged 60 or older and expected to retire by 2030, according to Think New Mexico.
In order to make the state a more attractive place for physicians, the report released Sunday proposes changes to the state's medical malpractice laws that include capping attorney's fees and prohibiting multiple lawsuits from being filed over a single malpractice incident.
However, such changes could face resistance in the Legislature, as a political committee affiliated with the New Mexico Trial Lawyers Association has made more than $295,000 in campaign contributions to 44 different legislative candidates during the current election cycle.
Meanwhile, other proposals in the report include making it easier for licensed health care professionals from other states to work — or practice remotely — in New Mexico.
That could be done by passing legislation adding New Mexico to existing multi-state health care compacts.
The state is currently a member of a 40-state nursing compact but has not joined similar compacts for doctors, physical therapists, dentists, mental health counselors and audiologists.
Most of New Mexico's neighboring states are members of five or more of the interstate compacts, according to the report.
As for the proposed health care permanent fund, the $2 billion would have to be set aside by lawmakers from the state's $13.4 billion in projected revenue for the coming budget year.
Legislators have already created new trust funds for early childhood programs, statewide conservation projects and higher education amid an ongoing state revenue boom.
Those funds, which are managed by the State Investment Council along with other state permanent funds, spin off yearly distributions.
Two senators proposed the creation of a new $1 billion Medicaid trust fund during this year's 30-day legislative session, but the bill did not advance to the Senate floor.
A new 60-day legislative session starts in January.
