How We Think

In 2016 as the state of New Mexico faced both new and continued financial challenges, state agencies were asked to implement dramatic and wide-ranging budget reductions. For hospitals, physicians and dentists, reductions in Medicaid payment rates were expected to reach $78 million. The cuts were expected to have a disproportionate impact on safety net hospitals, which would experience a 5% cut to inpatient payments, a 3% cut in outpatient payments and a 20% cut in the enhanced supplemental payments intended to offset uncompensated care.

Following years of declining admissions – including a reduction in births to fewer than one per week – the board of a small New England hospital made the difficult decision to close its OB unit.

A large post-acute care provider was facing record regulatory fines following a whistleblower lawsuit and allegations of health care fraud.

Amid the rising number of rural hospital closures, one county-owned hospital was determined to secure its future with the construction of a much-needed replacement facility.