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We ensure that New Mexicans attain their highest level of health by providing whole-person, cost-effective, accessible, and high-quality health care and safety-net services.
Health Care Consolidation Oversight Act
Welcome to the Health Care Consolidation Oversight Act page.
In 2025, Governor Michelle Lujan Grisham enacted House Bill 586: the Health Care Consolidation Oversight Act to strengthen New Mexico’s oversight of hospital mergers, acquisitions, and changes in control. This page is your one‑stop resource for understanding the process for HCA oversight, tracking active filings, and joining the conversation on how these transactions may affect quality, access, and affordability of care across our state.
- Effective Date: July 1, 2025
- Notice Posted: Within 10 days of complete filing
- Review Deadline: 120 days from complete submission
1. Who must file under the Health Care Consolidation Oversight Act?
All licensed hospitals and certain health care provider organizations (as defined in the legislation) proposing a merger, acquisition, or change in majority ownership/control must submit a Transaction Notice to DHI before closing.
2. What is considered a transaction under the Health Care Consolidation Oversight Act?
HB 586 applies to any “transaction,” defined as:
1. A merger of one hospital into another;
2. An acquisition of a hospital by another entity; or
3. A change of control of hospital ownership or real estate.
3. When is my submission considered “complete”?
You’ll have 30 days from the initial filing to respond to any requests for missing information. A submission becomes “complete” once HCA has received all required documents, exhibits, and fees.
4. What happens if I miss the public forum?
You can still submit written comments through the end of the comment period. All submissions—oral or written—are given equal weight in HCA’s review.
5. Who pays for expert consultants and review costs?
HB 586 authorizes HCA to retain specialized consultants—such as actuaries, financial analysts, or legal experts—to assist with complex transaction reviews. The hospital (or transaction parties) is responsible for reimbursing the HCA’s actual costs for these services.
6. How do I appeal an HCA decision?
If HCA denies or conditions your transaction, you may request a contested-case hearing under the Uniform Licensing Act (U.L.A.) within 30 days of the decision notice.
7. Can confidential or proprietary information be protected?
Yes. All documents you file with HCA are treated as confidential under HB 586. If you believe certain exhibits should remain proprietary, clearly mark them “CONFIDENTIAL” and file a redacted public version.
8. How long will the review take?
Once your submission is complete, HCA has 120 days to issue a decision. Complex transactions or those flagged as “urgent” may follow an accelerated schedule at HCA’s discretion.
9. What’s required in the annual posttransaction report?
For three years following your transaction, you’ll submit yearly updates on financial performance, service volumes, community benefit activities, and any material changes—using the format HCA provides. You can fill out and submit the report form HERE. You will also need to include THIS FORM in your submission.
10. How can I submit an annual report?
11. What penalties apply if a hospital fails to comply with, or violates, HCA’s recommendations?
Under HB 586, HCA may impose administrative fines on hospitals or transaction parties that knowingly violate filing requirements, proceed with a transaction without approval, or fail to comply with conditions. Fines are assessed on a per‑bed or per‑member basis (as specified in the administrative rules) and revenues are directed to the New Mexico School Fund.
12. Are there whistleblower protections for individuals who report violations?
Yes. HB 586 includes safeguards for individuals who report improper or undisclosed transactions. Whistleblowers may submit information confidentially to the HCA and are protected from retaliation. Any fine revenue collected from violations stemming from a whistleblower report also supports the School Fund.
Important Forms and Documents
(to be included with the Annual Report Submission form above)
Health Care Consolidation Oversight Act Stakeholder |
Roles & Expectations |
| Hospitals Considering a Transaction | – Initiate: File a complete Transaction Notice (all required exhibits) via HCA’s portal. – Collaborate: Respond promptly to HCA inquiries and requests for supplemental data. Pay required fee for cost incurred to contract with outside experts if needed – Engage: Attend public forum and consider community feedback. |
| State of New Mexico (HCA & Partners) | – Review & Decide: Conduct intake, completeness check, substantive review (8 statutory factors) and render approval/conditions/denial. – Coordinate: Consult HCA, OSI, NM DOJ and other agencies as appropriate. – Notify: Publish notices, host forums, enforce compliance. |
| Public & Stakeholders | – Stay Informed: Monitor filings, deadlines, and public forum schedules on the Health Care Consolidation Oversight Act page. – Provide Input: Submit written comments and/or attend the forum. |
When do I need to file a notice of merger and acquisition?
Anytime there is a proposed transaction to include acquisition affiliation, change in control of health care entities see the definitions in the link for more detail.
Control is presumed to exist if a person directly or indirectly owns, controls, holds 15% or more of the power to vote or hold proxies representing 15% or more of the voting securities.
For parties ready to submit a proposed transaction
Parties to a proposed transaction may request a pre-notice conference to determine if they are required to file a notice and or to discuss the potential extent of the review.
The documents you are submitting will be kept confidential within the HCA processes for review.
The filing obligations under this act are in addition to any other obligations that may be required under other laws.
One person that is party to the transaction shall submit to the authority a written notice of the proposed transaction.
Written notice of proposed transaction should include:
- Terms of the proposed transaction
- Copies of all transaction agreements between any parties
- List of all parties and the business addresses
- Statement describing the proposed transaction and whether and how the proposed transaction affects health care services in New Mexico
- The geographic service area affected by the proposed transaction
- Description of the groups or individuals likely to be affected by the transaction
- Summary of health care services currently provided by any of the parties
- Summary of health care services that will be added, reduced, or eliminated
- Explanation of why services will be reduced or eliminated in the service area in which they are currently provided
If at any time, the scope of the proposed transaction is significantly modified from that outlined in the initial notice submission the time periods set out in the Health Care Consolidation Oversight Act shall be restarted by the authority.
Within 30 days of receipt after the notice of a proposed transaction is filed, the authority shall notify the parties in writing if the notice is complete or, if the notice is incomplete.
Parties to a proposed transaction may request a pre-notice conference to determine if they are required to file a notice or to discuss the potential extent of the review. Request a pre-notice conference.
If incomplete, the authority will specify additional information that is required for submission.
After submission has been accepted and submitter has been notified that the submission is complete.
Once complete submission is received, the authority shall determine if the transaction is urgently necessary to maintain the solvency of a hospital or if there is an emergency that threatens the continued provisions of immediate health care services. In such circumstances, the authority may agree to immediate approval of a transaction with or without conditions.
Time periods shall be tolled during any time in which the authority has requested and is awaiting further information from the parties to a transaction necessary to complete its review.
A notice of proposed transaction shall be deemed complete by the authority on the date when all the information required by the Health Care Consolidation Oversight Act is submitted by all parties to the transaction.
Possible Cost
The authority may retain actuaries, accountants, attorneys or other professionals who are qualified and have expertise in the type of transaction under review as necessary to assist the authority in conducting its review of the proposed transaction.
The parties submitting the information for a proposed transaction shall pay the authority reasonable cost and expenses incurred by the authority in the performance of the authority’s duties pursuant to the Health Care Consolidation Oversight Act for cost associated with the authority’s contracts with experts, unless determined otherwise by the secretary.
There may be administrative fines incurred for transactions that are effectuated prior to approval by the Health Care Authority. These fines range from $5,000 per instance of violation to a maximum of $15,000 per day. Money collected from these fines will be deposited to the state treasury to credit of the current school fund as provided in Article 12, Section 4 of the constitution of New Mexico.
There are also Whistleblower fines ranging from $10,000 per violation and not to exceed $100,000 per violation.
Entry into Agreement and Effectuation of Agreement
Entry into a binding agreement before a transaction is effectuated is not a violation of the Health Care Consolidation Act if the transaction remains subject to regulatory review and approval.
The parties shall not effectuate a transaction without the written approval of the secretary.
The submitting party shall notify the authority in a form and manner prescribed by the authority when a transition is effectuated. Once notified, the process for licensing or ownership change will be followed as mandated by the state.
Whistleblower Protections
The Health Care Consolidation Oversight Act includes safeguards for individuals who report improper or undisclosed transactions. Whistleblowers may submit information confidentially to the HCA and are protected from retaliation. Any fine revenue collected from violations stemming from a whistleblower report also supports the School Fund. Whistleblower fines range from $10,000 per violation and not to exceed $100,000 per violation.
PUBLIC NOTICE OF PROPOSED HEALTH CARE FACILITY TRANSACTION
Pursuant to New Mexico House Bill 586 (2025) (Health Care Consolidation Oversight Act), the New Mexico Health Care Authority (HCA) Division of Health Improvement (DHI) provides notice of the following proposed transaction:
• Proposed Transaction Number: 2026-01
• Facility Name: New Mexico Behavioral Healthcare (NMBH), LLC (Albuquerque, NM)
• Parties Involved:
- The Woodland SNF Operator Trust (irrevocable grantor trust)
- The Woodland SNF Operator Trust II (irrevocable grantor trust)
- New Mexico Behavioral Healthcare, LLC (Nevada limited liability company)
- Thrive-NMBH, LLC (Delaware limited liability company)
- Pinnacle Behavioral Health Systems, LLC
- AWM Advisory
• Type of Transaction: Change of Ownership: The Woodland SNF Operator Trust and The Woodland SNF Operator Trust II propose acquiring 100% ownership of NMBH.
• Date HCA Received Completed Transaction: October 2, 2025
• Date by which HCA will render its Decision: February 6, 2026
Current List of Licensed Hospitals
Frequently Asked Questions (FAQs)
Who can I contact for help with filing?
- Technical/Portal Issues: Submit a ticket
- Policy & Process Questions: Submit a question
- Fee & Payment Inquiries: Submit an inquiry
- Whistleblower: Submit a Wistleblower report
- Other Public Inquiries: Submit an inquiry
- Submit Annual Report: Submit an annual report
Helpful Links to Bill and Rules
Stay Informed
Never miss a filing or forum. Sign up below to receive real‑time notifications whenever a new transaction notice is posted, a public comment period opens, or a review decision is issued under the Health Care Consolidation Oversight Act. (We respect your privacy. Your email will be used solely for the Health Care Consolidation Oversight Act notifications and not shared with third parties.)