State Healthcare Transaction Notification Laws

New Mexico

Health Care Consolidation Oversight Act: Senate Bill 15

Current Status: Effective since March 1, 2024.

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Key Takeaways

  • Requires parties to obtain approval from New Mexico’s Office of Superintendent of Insurance (“NM Office”) for transactions involving New Mexico hospitals.
  • The parties must provide 120 days notice before closing, after which the NM Office may approve, approve with conditions, or disapprove a transaction.

Applies only to New Mexico hospitals.

Parties must provide notice for a variety of transaction types involving covered entities, including:

  • Merger of a hospital in New Mexico with another hospital;
  • Acquisition of one or more hospitals in New Mexico;
  • Affiliation or contract or other agreement that results in a change of control of a hospital in New Mexico, including with a management services organization or health insurer;
  • Formation of a new corporation, partnership, joint venture, trust, parent organization or management services organization that results in a change of control of an existing hospital in New Mexico; and
  • Sale, purchase, lease, new affiliation or any agreement that results in control of a hospital in New Mexico. By statute, control can be presumed with as little as 15% share of voting securities.

The statute includes no size related thresholds.

The NM Office must complete its review of a proposed transaction within 120 days of receiving a completed notice, which time period can be tolled if the NM Office makes additional information requests of the parties. The NM Office can waive this time period for transactions that are “urgently necessary to maintain the solvency of the hospital” or for other emergencies.

Parties must submit a notification to the NM Office, and will pay the costs and expenses incurred by the NM Office during the course of its review. Information required to be included in the notification includes:

  • List of the parties, the terms of the proposed transaction, and copies of all transaction agreements;
  • Statement describing the proposed transaction’s goals and whether and how the proposed transaction affects health care services in New Mexico;
  • Geographic service area of any hospital affected by the proposed transaction;
  • Description of the groups or individuals likely to be affected by the transaction; and
  • Summary of the health care services currently provided by the parties and any health care services that will be added, reduced, or eliminated, including an explanation of why any services will be reduced or eliminated.

All materials provided to the NM Office will be kept confidential.

There are no enumerated penalties included in the statute.

This informational piece, which may be considered advertising under the ethical rules of certain jurisdictions, is provided on the understanding that it does not constitute the rendering of legal advice or other professional advice by Goodwin or its lawyers. Prior results do not guarantee a similar outcome.