The bill amends the Medical Malpractice Act in New Mexico to enhance clarity in definitions, limit punitive damages, and ensure timely payments from the patient's compensation fund. Key definitions such as "health care provider," "hospital," and "independent outpatient health care facility" are updated. The legislation establishes financial responsibility requirements for health care providers and independent outpatient facilities, including minimum insurance coverage and deposit requirements. It also sets caps on recoverable damages for malpractice claims, varying by provider type and the year of the injury. Additionally, punitive damages can only be awarded with clear evidence of malicious or reckless behavior, with specific limits imposed on certain providers and higher caps for hospitals.

Furthermore, the bill introduces a fund to support the administration of medical malpractice claims, requiring the superintendent to contract with a third-party administrator by January 1, 2022. This fund will be financed through annual surcharges on health care providers, collected alongside malpractice insurance premiums, with a goal of ensuring solvency by December 31, 2026. The threshold for claims against health care providers is raised from $200,000 to $250,000 starting January 1, 2022, and provisions for proration of payments if the fund is exhausted are included. The bill emphasizes confidentiality of financial information and ensures that if any part of the legislation is found invalid, the remaining sections will still be enforceable.

Statutes affected:
introduced version: 41-5-3, 41-5-5, 41-5-6, 41-5-7, 41-5-25
JC substitute: 41-5-3, 41-5-5, 41-5-6, 41-5-7, 41-5-25
Final Version: 41-5-3, 41-5-5, 41-5-6, 41-5-7, 41-5-25