Bill > SB176

This bill proposes several changes to medical malpractice laws in New Mexico, focusing on damages, attorney fees, and the creation of a new patient safety improvement fund. The legislation incrementally increases the maximum recoverable damages for medical malpractice claims, with different limits for various types of healthcare providers. For independent providers, the per-occurrence limit will be $750,000 and will be adjusted annually by the consumer price index. Hospitals will see a progressive increase in their liability limits, reaching $6 million per occurrence by 2027. The bill introduces a new provision that requires 75% of punitive damages in medical malpractice claims to be awarded to the state, with these funds specifically directed to the newly created Patient Safety Improvement Fund. Additionally, the legislation limits attorney contingency fees to 25% for settlements before trial and 33% for settlements or judgments after trial begins. The Patient Safety Improvement Fund will be administered by the Department of Health and can only be used for improving patient safety and healthcare outcomes, with funds coming from punitive damage awards, gifts, grants, and legislative appropriations. These changes aim to balance patient compensation, healthcare provider liability, and system-wide patient safety improvements.

Health and Social Services

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=176&year=25