The bill amends the Medical Malpractice Act in New Mexico to clarify definitions, limit punitive damages, and require that payments from the patient's compensation fund be made as expenses are incurred. Key updates include the inclusion of corporations and organizations as health care providers, and the introduction of terms such as "independent outpatient health care facility" and "value of accrued medical care and related benefits." The bill specifies that hospitals and hospital-controlled outpatient health care facilities will not participate in the medical review process starting July 1, 2021, and outlines a timeline for when these facilities will be subject to the provisions of the Medical Malpractice Act. Additionally, it establishes new limits on recoverable damages for malpractice claims, with specific amounts set for different types of health care providers and facilities, while ensuring that payments for medical care and related benefits are exempt from these limitations.

Moreover, the bill introduces provisions regarding punitive damages, stating they can only be awarded if clear and convincing evidence of malicious or reckless conduct is provided, and sets a cap on punitive damages that cannot exceed the limits outlined in Section 41-5-6 NMSA 1978. It also modifies the Patient's Compensation Fund by extending the qualification period for hospitals and outpatient health care facilities until January 1, 2030, and raises the threshold for claims against the fund from $200,000 to $250,000 starting January 1, 2022. These changes aim to enhance accountability among health care providers while ensuring the sustainability of the compensation fund.

Statutes affected:
introduced version: 41-5-3, 41-5-5, 41-5-6, 41-5-7, 41-5-25