A bill aimed at providing oversight of private equity investment in New Mexico healthcare is set to be filed this session. The Healthcare Consolidation Act, co-sponsored by state Sen. Katy Duhigg and House Majority Whip Reena Szczepanski, would require potential purchasers of healthcare entities to go through a review process by the Office of Superintendent of Insurance. The bill aims to prevent loss of service or access in communities where private equity firms own nearly 40% of healthcare facilities.
Duhigg and Szczepanski are filing the bill due to a lack of oversight of private equity transactions in the state. The Private Equity Stakeholder Project has ranked New Mexico as having a 100% risk score for private equity in healthcare. The bill aims to provide transparency without prohibiting private equity purchases.
The goal is to prevent profit-driven tactics by private equity firms, such as cutting services and employees, selling hospital land to charge rent, and pushing unnecessary procedures onto patients. The bill includes a whistleblower protection section to encourage employees to report any issues without fear of reprisal.
Insurance Superintendent Alice Kane stated that the bill would allow for monitoring of private equity transactions and enforcement against companies that impact access, quality, or cost. Despite concerns from Republicans about hindering business investment, Kane believes the bill will not have that effect in the insurance industry. The focus is on preventing problems seen in prior transactions and encouraging providers to report any issues they observe.
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