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 health care provider acted with deliberate disregard for the rights or safety of others. Additionally, punitive damages will not be paid from the fund or the health care provider's insurance unless explicitly covered by the contract. The bill 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.

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 a more structured approach to punitive damages in medical malpractice cases, potentially reducing the financial burden on health care providers while still allowing for accountability in cases of egregious misconduct.

Statutes affected:
introduced version: 41-5-7