Center for Social Policy Reveals Challenges in New Mexico's Healthcare Billing System

August 19, 2025 | Legislative Health & Human Services, Interim, Committees, Legislative, New Mexico


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Center for Social Policy Reveals Challenges in New Mexico's Healthcare Billing System
A recent meeting of the New Mexico Legislative Health and Human Services Committee highlighted critical issues surrounding the state's healthcare billing and insurance processes, revealing significant challenges that impact both patient care and clinician well-being. The discussions were led by representatives from the Center for Social Policy, who presented findings from a comprehensive study on the medical revenue cycle in New Mexico.

One of the key findings emphasized the excessive time healthcare professionals spend on billing and insurance tasks, which detracts from patient care. Clinicians reported dedicating up to four hours a week to these administrative duties, with some nurses spending as much as four hours a day on prior authorization alone. This lengthy process, often complicated by automated phone systems and frequent rule changes, can delay necessary treatments for patients, particularly in rural areas where access to specialized care is already limited.

The study also revealed that many healthcare facilities lack sufficient staffing and infrastructure to manage patient loads effectively. High turnover rates in billing and coding positions exacerbate the problem, leading to a cycle of training and retraining that further strains resources. Participants noted that outsourcing billing tasks often results in poor outcomes, while the introduction of artificial intelligence in some facilities has shown promise but raises concerns about over-reliance on technology in healthcare.

Another significant concern raised during the meeting was the impact of insurance company policies on patient care. Clinicians expressed frustration over how insurance formularies dictate treatment options, often prioritizing cost over evidence-based care. This has led to a growing trend of healthcare providers opting out of accepting insurance altogether, particularly in rural communities where Medicaid reimbursement rates are insufficient to sustain operations.

The implications of these findings are profound, as they highlight a healthcare system that is increasingly burdened by administrative complexities, ultimately affecting the quality of care patients receive. The committee's discussions underscored the urgent need for reforms that streamline billing processes and enhance support for healthcare providers, particularly in underserved areas. As New Mexico continues to grapple with these challenges, the focus remains on improving health outcomes for all residents while ensuring that clinicians can deliver care without the overwhelming burden of administrative tasks.

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