New Mexico Hospital Equipment Loan Council

MESSAGE FROM THE ADMINISTRATOR, ERIKA CAMPOS, PRESIDENT OF HOSPITAL SERVICES CORPORATION

Created in 1983 with the enactment of the New Mexico Hospital Equipment Loan Act, the Council’s purpose is to provide the healthcare industry with access to low-cost capital through the issuance of tax-exempt and taxable bonds, loans, and leases.  The Council is an independent instrumentality of the State of New Mexico and is governed by a five-member Board appointed by the Governor.  Through its Program Administrator, Hospital Services Corporation, the Council assists healthcare organizations with financing a broad spectrum of projects, including construction, equipment, and refinancing.  The Council does not receive state appropriations or tax revenue and relies on borrower fees to pay for its operations.  Additionally, any bonds issued by the Council do not create an obligation to the State of New Mexico.

In addition to traditional revenue bonds, loans and leases, the Council offers a property tax exemption for property acquired through an industrial revenue bond.  The exemption from property tax is applicable for the life of the bond issue or loan, not to exceed thirty years from the date the bond was issued.  This enabling legislation provides a significant benefit for borrowers that would not otherwise qualify for a property tax exemption under other constitutional or statutory provisions. 

Both non-profit and for-profit healthcare facilities qualify for the property tax exemption.  Non-profit healthcare facilities can issue tax-exempt debt, and for-profit healthcare facilities must issue taxable debt.  Eligible healthcare facilities include any entity or person that:

• is licensed by the Department of Health to provide health-related services, assisted living support or long-term care,

• provides health-related research, or

• is properly accredited or certified and eligible to receive Medicare or Medicaid reimbursement for all or part of its activities providing mental health services, developmental disabilities services, or related specialized support to or on behalf of a defined group of persons.