Covent Health Hobbs Hospital tops the list of recipients of grant funds from New Mexico’s newly established Rural Health Care Delivery Fund (RHCDF). Ten other “rural healthcare organizations”, including the The Psychiatric Care Center, LLC, located in Lea, Curry, DeBaca, Quay and Roosevelt counties, will receive grant monies.
Covenant Health Hobbs Hospital will use the funds it receives to expand labor and delivery care, as well as pre- and post-natal care and maternal care. Patients receiving care at Covenant Health Hobbs come mainly from Lea and Eddy counties. The Psychiatric Care Center, LLC will use its funds to “expand behavioral health services”.
According to Gov. Michelle Lujan Grisham’s office, Covent Health Hobbs and The Psychiatric Care Center will receive their funding in an expedited manner and “must implement new services by the end of 2023”.
$18 Million of $80 Million to Be Distributed Now
Gov. Lujan Grisham announced the funding of the first tranche of the RHCDF program on Tuesday, October 17. Eighteen million dollars of the fund’s $80 million total is being distributed. The $80 million fund was approved by the 2023 New Mexico legislature through Senate Bill 7 (SB7), sponsored by Sen. Liz Stefanics (D – Dist. 39), Rep. Gail Armstrong (R – Dist. 49) and Rep. Marian Matthews (D – Dist. 27). The bipartisan SB7 easily passed both legislative branches and was quickly signed into law by Gov. Lujan Grisham.
About the legislation Sen. Stefanics said, “This funding program is so exciting – it will hit every corner of the state to benefit residents in rural counties/communities.” She continued, “The needs being funded include pediatrics, primary care, OB care, dental services, behavioral health, and much more.”
Explaining how the grant program works an article posted at NMPoliticalReport.com. states, “The measure enables health care systems to apply for grants to provide new or expanded services in rural communities.” The New Mexico Human Services Department (HSD) is organizing and administering the program. Healthcare providers in 28 of New Mexico’s 33 rural counties will receive grants from the initiative.
New Mexico’s Rural Counties Need High-Quality Healthcare
Gov. Lujan Grisham states in an October 17 press release, “Living in a rural area shouldn’t be a deciding factor for the level of health care New Mexicans receive. It is a number one priority of this administration to take whatever actions are necessary to build up and support health care providers. Taking a significant portion of the financial burden off of rural providers to expand access will have a real impact on the lives and health of New Mexicans.”
The governor’s most recent statement parallels her August 2023 comment about the RHCDF. She said, “New Mexicans living in rural parts of our state should have the same access to high-quality and affordable health care, period. This fund is a crucial part of our overarching strategy to strengthen our state’s rural health care systems, improve access to care, and advance health equity across New Mexico.”
At its website the HSD states about RHCDF funding, “Funding from the RHCDF is intended to defray operating losses, including rural health care provider or rural health care facility start-up costs, incurred in providing new or expanded health services to New Mexico residents. HSD will provide up to $80 million in funding through FY26 [fiscal year 2026].”
According to the NM Political Report, “New Mexico, like other rural states, faces an OB-GYN desert in rural areas due to the cost of keeping labor and delivery services available at rural hospitals.” Hopefully, funds received by Lea County recipients will help to alleviate this problem. The exact amount of money that Covenant Health Hobbs and The Psychiatric Care Center, LLC will receive has not been released.
