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. The bill also clarifies that the provisions do not prevent patients and health care providers from entering into settlement agreements regarding medical care and related benefits. Additionally, it establishes that any judgments or settlements against hospitals or outpatient facilities for injuries occurring after December 31, 2026, will not be paid from the fund.

Statutes affected:
introduced version: 41-5-7