The proposed bill aims to establish new requirements for hospital credentialing processes, specifically prohibiting hospitals that receive local, state, or federal funds from denying medical staff membership or clinical privileges based on economic factors. The credentialing authority must evaluate applicants solely on their individual qualifications, applying reasonable and nondiscriminatory standards. The bill emphasizes the importance of objective evaluations free from anticompetitive intent and encourages the inclusion of professionals from the applicant's field in the evaluation process.

Additionally, the bill outlines specific factors that cannot be considered when assessing an applicant's qualifications for staff membership or clinical privileges. These include an applicant's membership in professional societies, advertising practices, participation in prepaid health plans, and economic criteria unrelated to quality of care or professional competence. The legislation reinforces that compliance with established bylaws and regulations remains mandatory for all health care providers, while explicitly excluding health care facilities owned by the University of New Mexico Health System from its provisions.