Health care loan repayment expands to address doctor shortage – Record expansion part of strategy to add health providers in NM

SANTA FE – Gov. Michelle Lujan Grisham today announced a major expansion of New Mexico’s Health Professional Loan Repayment Program, the latest in a series of administration actions to address a physician shortage that has left 32 of the state’s 33 counties with critical gaps in care.

Under the expanded Health Professional Loan Repayment Program, licensed physicians — including part-time physicians — will receive $75,000 per year for student debt relief over a four-year service commitment, for a total of up to $300,000. That makes New Mexico’s program the most generous state-funded physician loan repayment offer in the nation — more than double Georgia’s $37,500 per year, nearly triple Ohio’s offering, and three times Rhode Island’s annual award.

Previously, New Mexico’s awards for physicians were capped at $25,000 per year over three years. The expansion represents a 200% increase in annual support and a fourfold increase in total debt relief available to participating physicians. The expansion was authorized under House Bill 66, which also directs 50% of the program’s $25 million annual appropriation specifically to licensed physicians.

More than 25 other health care licensure fields remain eligible for awards of up to $25,000 per year with a three-year service commitment.

Since 2019, program participation has grown 3,500%, with 1,213 nurses, physicians and mental health counselors currently receiving student debt relief statewide. Ninety-six percent of program participants remain in New Mexico to practice. Gov. Lujan Grisham has committed a record $87.9 million to the program over the course of her administration.

“Every New Mexican deserves access to the care they need, and today, we’re putting $300,000 on the table for physicians who want to serve communities that need them most,” said Lujan Grisham. “We’re committed to cutting wait times, closing care gaps and making New Mexico the best place in America to practice medicine.”

“We are planting our flag and sending a clear message to doctors and medical residents nationwide: New Mexico is the place to build your future,” said Higher Education Secretary Stephanie M. Rodriguez. “With universal free child care, tuition‑free college, and now one of the most powerful loan-repayment programs for health care professionals in the country, New Mexico is a place where you can grow your career, support your family, and serve the communities that need you most.”

C. Nathaniel Roybal, M.D., Ph.D., of Retina Consultants of New Mexico said his practice will leverage the expanded loan repayment program to recruit top specialists, expand access to specialty care, and ensure more New Mexicans can receive high-quality care close to home.

“New Mexico’s Health Professional Loan Repayment Program is more than an incentive, it’s a commitment to the future of our state,” Roybal said. “This investment sends a national message that New Mexico will become home to the next generation of talented physicians.”

New Mexico faces a shortage of more than 5,000 health care professionals. Nearly 40% of the state’s doctors are 60 or older and expected to retire by 2030. A Legislative Finance Committee survey published earlier this year found that two-thirds of New Mexico physicians were considering leaving the state. The most common reason: malpractice insurance premiums that far outpaced costs in surrounding states, driven by an uncapped punitive damages environment.

To address the shortfall, Governor Lujan Grisham signed landmark medical malpractice reform — the result of more than a year of negotiations — capping punitive damages and raising the evidentiary standard for malpractice claims. The legislation is expected to reduce physician malpractice premiums by up to 16%. New Mexico also joined the Interstate Medical Licensure Compact this year, streamlining the licensing process for out-of-state physicians and projected to increase license applications by 10% to 15%.

Together with today’s record loan repayment expansion, these actions reflect a comprehensive strategy to recruit, retain and restore the physician workforce New Mexico communities depend on.

Applications for New Mexico’s health care professional loan repayment program open June 1 and close July 31. For eligibility information and how to apply for the New Mexico Health Professional Loan Repayment program visit hed.nm.gov.

New Mexico Higher Education Department Secretary Stephanie Rodriguez is available for media interviews related to the loan program’s expansion. Media should contact Auriella Ortiz, communications director at HED, to schedule an interview. Auriella.Ortiz@hed.nm.gov