The bill amends Section 41-5-7 of the New Mexico Statutes to limit the availability of punitive damages in medical malpractice claims. It establishes that punitive damages can only be awarded if the prevailing party provides clear and convincing evidence that the healthcare provider acted with deliberate disregard for the rights or safety of others. Additionally, punitive damages will be the personal liability of the healthcare provider and cannot be paid from the fund or the provider's insurance unless explicitly covered by the contract. 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 allowed by law.

Furthermore, the bill introduces a cap on punitive damage awards, stating that the amount shall not exceed thirty times the state median annual household income at the time the award is made. This legislative change aims to provide clearer guidelines on the awarding of punitive damages in medical malpractice cases while ensuring that healthcare providers are held accountable for egregious conduct.

Statutes affected:
introduced version: 41-5-7