In Santa Fe, New Mexico, recent legislative moves aim to address the exodus of healthcare providers from the state by adjusting the medical malpractice laws that were implemented in 2020. Originally intended to increase accountability, these laws have inadvertently led to skyrocketing insurance costs for medical professionals, making New Mexico less attractive compared to its neighbors.
In response, Governor Michelle Lujan Grisham emphasized the urgency during her State of the State address, pressing for reforms to create a more favorable environment for top medical professionals to practice in New Mexico. She pointed out the disparities in insurance rates between New Mexico and surrounding states, highlighting that they should not be exceptionally higher locally.
A bipartisan effort led by Senators Martin Hickey and Pat Woods has introduced a bill that seeks comprehensive reform of the state’s medical malpractice statutes. The legislative proposal, crafted with insights from Think New Mexico, a prominent policy research group, targets key sore points in the existing framework.
Think New Mexico released a report in 2024, diagnosing the problem partly to the state’s overly litigious environment, as highlighted by its founder, Fred Nathan. He noted the lack of caps on either attorney’s fees or punitive damages has placed New Mexico second nationally in per capita medical malpractice lawsuits filed.
Under the new bill, advocates aim to introduce caps on attorney’s fees, cease lump-sum payouts from the patient compensation fund, and redirect 75% of punitive damages awarded into a new public fund dedicated to improving patient safety measures.
However, the reform faces opposition from segments within the legal community. Attorney Lisa Curtis criticized the proposed caps, arguing they would primarily benefit large corporations at the expense of victims’ potential compensations. She voiced concerns that limiting legal fees would restrict access to legal representation for many, hindering their ability to file legitimate medical malpractice lawsuits.
Balancing these viewpoints, Sen. Pat Woods pointed out that reducing the flow of money towards legal fees could increase the compensation actually reaching affected patients, putting their interests at the forefront.
Both proponents and critics of the bill agree on the need to prioritize patient care and safety though their methods diverge. Curtis expressed hope that these discussions would spark broader reforms, while Woods remains optimistic that different approaches discussed might converge for the benefit of New Mexicans.
As the debate unfolds, the bill is yet to advance through the legislative committee stages before any changes can be enacted.
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