The bill amends Section 41-5-7 of the New Mexico Statutes concerning medical malpractice claims, specifically addressing the limitations on punitive damages. It establishes that punitive damages can only be awarded if the prevailing party provides clear and convincing evidence that the health care provider acted with deliberate disregard for the rights or safety of others. Additionally, it specifies that punitive damages will be the personal liability of the health care provider and cannot be paid from the fund or the provider's insurance unless explicitly covered by the insurance contract.

Furthermore, the bill introduces a cap on punitive damage awards, stating that the amount cannot exceed thirty times the state median annual household income at the time the award is made. This legislative change aims to limit the financial exposure of health care providers while still allowing for the possibility of punitive damages in cases of egregious misconduct. The bill also clarifies that nothing in the existing law precludes the award of punitive damages to a patient, nor does it authorize liability for punitive damages where it would not otherwise be permitted by law.

Statutes affected:
introduced version: 41-5-7