New Mexico officials ask health system for $50M to cover Medicaid shortfall

The New Mexico Human Services Department recently asked Albuquerque-based University of New Mexico's Health Sciences Center for $50 million to fund the state's Medicaid deficit, but UNM denied the request, according to the Albuquerque Journal.

The Human Services Department was short $86 million in state funds to get by for the next 15 months. But since the federal government matches $3 to $4 for every dollar the state spends on Medicaid, the total shortfall is actually closer to $417 million.

At the beginning of February, the Human Services Department organized a meeting with UNM President Bob Frank, Health Sciences Center Chancellor Paul Roth, MD, and UNM Hospitals CEO Steve McKernan. UNM's Executive Vice President and CFO David Harris confirmed HSD officials requested $50 million, according to the report.

The UNM Health Sciences Center is amply equipped to fulfill the request — it has more than $200 million in reserves. But there was one problem with the situation: The Human Services Department couldn't promise to repay UNM.

After UNM denied the request, the Human Services Department decided to seek funding elsewhere, according to Mr. Harris.

Human Services Department spokesman Kyler Nerison confirmed the situation: "HSC denied the request and the discussion ended," Mr. Nerison said, according to the report.

This situation isn't rare for the parties involved. "It's important to understand this is not the first time this has ever occurred," said Mr. Harris, according to the report. In 2015, the Human Services Department requested approximately $5.8 million from the UNM Health Sciences Center. UNM approved the request.

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