The bill establishes new requirements for hospital credentialing processes in New Mexico, specifically prohibiting hospitals that receive local, state, or federal funds from denying medical staff membership or clinical privileges based on economic factors. It mandates that decisions regarding clinical privileges and staff membership must be based solely on an applicant's individual qualifications, evaluated through reasonable and nondiscriminatory standards. The bill emphasizes the importance of an objective evaluation process, which should ideally involve members of the applicant's profession.

Additionally, the bill outlines specific factors that hospitals are prohibited from considering when evaluating applicants for staff membership or clinical privileges. These include an applicant's professional society membership, advertising practices, participation in prepaid health plans, involvement in private group practices, legal testimony history, patient referral practices, and any economic criteria not directly related to the quality of care or professional competence. Notably, the bill clarifies that it does not apply to health care facilities owned and operated by the University of New Mexico Health System.