underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
SENATE BILL 450
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Antoinette Sedillo Lopez
AN ACT
RELATING TO HEALTH CARE; ENACTING THE CORPORATE PRACTICE OF
MEDICINE ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be
cited as the "Corporate Practice of Medicine Act".
SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the
Corporate Practice of Medicine Act:
A. "federally qualified health center" means a
health facility that the United States department of health and
human services has deemed to qualify for federal funds as a
federally qualified health center;
B. "health care entity" means a person that
provides or supports the provision of health care services to
patients in New Mexico, including a hospital, health care
.230863.2 underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
provider, in-state or out-of-state telemedicine provider,
health care staffing company, health care provider
organization, health care facility, management services
organization or organization of health care providers or
facilities; provided that "health care entity" does not mean a
federally qualified health center or an independent health care
practice;
C. "health care facility" means a hospital or other
facility licensed by the health care authority to provide
health care services in a health care setting, including an
inpatient facility; health system consisting of one or more
health care entities that are jointly owned or managed;
ambulatory surgery or treatment center; residential treatment
center; diagnostic, laboratory or imaging center; freestanding
emergency facility's outpatient clinic or rehabilitation
facility; hospice center; long-term care facility; and other
therapeutic health setting; provided that "health care
facility" does not include an adult daycare facility,
freestanding birth center, child care facility or shelter care
home;
D. "health care provider" means a person certified,
registered, licensed or otherwise authorized pursuant to state
law to perform or provide health care services to individuals
in the state;
E. "health care services" means the care,
.230863.2
- 2 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
prevention, diagnosis, treatment or relief of an illness,
injury, disease or other medical, dental, mental or behavioral
health or substance use disorder condition, including:
(1) inpatient, outpatient, habilitative,
rehabilitative, dental, palliative, home health, hospice or
mental or behavioral health services provided by a health care
entity; and
(2) retail and specialty pharmacy services,
including provision of drugs;
F. "health care staffing company" means a person
engaged in the business of providing, procuring for employment
or contracting health care personnel for a health care
facility; provided that "health care staffing company" does not
include an individual who independently provides the
individual's own services to a health care facility as an
employee or a contractor;
G. "hospital" means a hospital licensed by the
health care authority but does not include a state-owned
special hospital operated by the department of health;
H. "independent health care practice" means a
health care provider organization entirely owned or controlled
by one or more health care providers who are individuals and
who provide health care services through the health care
provider organization to patients in New Mexico;
I. "long-term care facility" means a nursing home
.230863.2
- 3 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
licensed by the health care authority to provide intermediate
or skilled nursing care;
J. "management services organization" means a
person that contracts with a health care entity to perform or
provide personnel to perform all or substantially all of the
administrative or management services relating to supporting or
facilitating the provision of health care services; and
K. "telemedicine provider" means a provider who
uses telecommunications and information technology to provide
clinical health care from a distance to evaluate, diagnose and
treat patients in real time or asynchronously.
SECTION 3. [NEW MATERIAL] PROHIBITIONS.--
A. A health care entity shall not indirectly or
directly interfere with, control or otherwise direct the
professional judgment or clinical decisions of a health care
provider.
B. A health care entity doing business in this
state shall not:
(1) interfere with the professional judgment
of a health care provider making health care decisions,
including any of the following:
(a) determining what diagnostic tests
are appropriate for a particular condition;
(b) determining the need for referrals
to, or consultation with, another licensed health care
.230863.2
- 4 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
provider;
(c) being responsible for the ultimate
overall care of the patient, including treatment options
available to the patient; and
(d) determining how many patients a
health care provider shall see in a given time period; or
(2) exercise control over or be delegated the
power to do any of the following:
(a) own or otherwise determine the
content of patient medical records;
(b) select, hire or fire health care
providers, allied health staff or medical assistants based, in
whole or in part, on clinical competency or proficiency;
(c) set the parameters pursuant to which
a health care provider shall enter into contractual
relationships with third-party payers;
(d) set the parameters pursuant to which
a health care provider shall enter into contractual
relationships with other health care providers for the delivery
of care;
(e) make decisions regarding coding and
billing procedures for patient care services; and
(f) approve the selection of medical
equipment and medical supplies for a health care provider.
SECTION 4. [NEW MATERIAL] PRIVATE RIGHT OF ACTION--
.230863.2
- 5 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
DAMAGES--ENFORCEMENT BY ATTORNEY GENERAL.--
A. A person who has suffered injury by reason of an
act or practice in violation of the Corporate Practice of
Medicine Act may sue in district court. Upon a showing that
the Corporate Practice of Medicine Act is being or has been
violated and a showing that the plaintiff has suffered injury,
the court may award damages, punitive damages and injunctive
relief and shall award the cost of the suit, including
reasonable attorney fees.
B. Whenever the attorney general has reasonable
belief that a person is engaging in or about to engage in an
act or practice in violation of the Corporate Practice of
Medicine Act and enforcement proceedings would be in the public
interest, the attorney general may bring an action in the name
of the state alleging violations of that act. An enforcement
action by the attorney general may be brought in the district
court of the county in which the person that allegedly is
engaging in or about to engage in an act or practice in
violation of the Corporate Practice of Medicine Act resides or
has its principal place of business or in the district court in
any county in which the person allegedly is engaging in, has
engaged in or is about to engage in an act or practice in
violation of the Corporate Practice of Medicine Act. In an
action filed by the attorney general pursuant to the Corporate
Practice of Medicine Act, the attorney general may petition the
.230863.2
- 6 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
district court for temporary or permanent injunctive relief and
restitution. The attorney general acting on behalf of the
state shall not be required to post bond when seeking a
temporary or permanent injunction in an action brought pursuant
to this section.
C. The relief provided in this section is in
addition to remedies otherwise available pursuant to common law
or other New Mexico statutes.
SECTION 5. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
- 7 -
.230863.2