Rep. Rebecca Dow and Sen. John Arthur Smith sponsored House Bill 0222 on Jan. 24 that requests the legislature form a special hospital district, but it got no traction and garnered no action.
Currently the hospital’s ownership and big-picture governance is handled by the Joint Powers Commission, comprised of 12 members. There are three elected officials from each local-government owner on the board, Sierra County, City of Truth or Consequences, City of Elephant Butte and Village of Williamsburg.
The day-to-day finance and governance is the Governing Board’s responsibility, a nine-member board of non-elected officials, appointed by each body of local elected officials. There are three County, three Truth or Consequences, two Elephant Butte and one Village representatives. The membership represents the population and ownership percentage of 40 percent, 40 percent, 15 percent and 5 percent respectively.
On January 9, the JPC unanimously signed a resolution asking the legislature to make the County boundaries into a special hospital district. Three other special hospital districts have been formed by legislation.
If the special hospital district had been formed locally, the three Sierra County Commissioners would decide the number of trustees that would govern the hospital and if they would be at-large or district candidates. Any County elector could run for trustee and the people would vote their choice or choices, depending if it was an at-large or district election.
Hospital districts can also be formed by circulating a petition among county electors specifying the boundary and if “trustees” will be elected by district or at-large. If the number of electors signing the petition mirrors or exceeds 10 percent of the votes in the last gubernatorial election, the petition would succeed. Then an election for trustees would be held.
Dow and Smith, who represent Sierra County, sponsored House Bill 0222 during the recent short, 30-day legislative session. They requested Governor Michelle Lujan Grisham make it one of her priorities or a “call” item, since it would be hard to get it passed during a rushed session without her added support.
According to County Commissioner Travis Day, “the bill was never called by the governor.”
Dow responded to a query why the Governor didn’t heed their request. Smith did not respond by press time.
“All we were told [by the Governor’s office] was that ‘someone who currently serves on one of the boards called with concerns,’” Dow said in an email.
One of the primary reasons for forming a special hospital district, said JPC Chairperson and Elephant Butte Mayor Pro Tem Kim Skinner last month, is to get the governing board down to a reasonable number, the JPC and Governing Board being “notorious for infighting.”
The infighting has hurt hospital finances and stability, Skinner said.
Sierra Vista Hospital was saved by Dow and Smith in 2018, Skinner said. The hospital had borrowed $39 million from the New Mexico Finance Authority in 2016 to build the new wing, but was short money for paying it back.
With Dow and Smith’s help, the hospital successfully renegotiated the loan down to $30 million, Skinner said. And Dow and Smith gave all their legislative grant money to the hospital that year, totaling $5.5 million.
During the negotiation process, Skinner said Dow, Smith and the Department of Finance and Administration asked that the governance be reorganized, which two years later resulted in the JPC requesting the legislature to form a special hospital district.
Since the JPC vote on the resolution to form the special hospital district was unanimous, it seems likely it was a Governing Board member who contacted the Governor. If so, it would confirm the two boards’ notoriety for infighting, with the Governor and our state elected officials putting their time and efforts elsewhere.