This bill aims to improve healthcare access in rural New Mexico by significantly increasing the Rural Health Care Practitioner Tax Credit from $5,000 to $15,000 for eligible healthcare practitioners, including physicians and dentists, who provide services in underserved areas. Additionally, it introduces a new Physician Income Tax Credit, allowing physicians who have completed their residency and practice full-time in New Mexico to claim a credit of $50,000 for up to five consecutive years, contingent upon having outstanding student loans from their medical education. The bill also establishes the Medical Residency Loan Repayment Act, which creates a fund for loan repayment awards to medical residents and fellows who commit to practicing in New Mexico for five years, while mandating the Health Care Authority to conduct cost studies every three years to ensure adequate Medicaid reimbursement rates.

Moreover, the bill amends the Medical Malpractice Act by updating definitions, adjusting liability limits, and establishing new regulations regarding attorney fees in malpractice claims. It introduces new definitions for "health care provider," "independent outpatient health care facility," and "independent provider," while setting a cap of $600,000 per occurrence for general malpractice claims and specific limits for independent providers and outpatient facilities. The bill also includes a tiered structure for attorney fees based on the amount recovered and appropriates $3 million from the general fund to support the medical residency loan repayment fund for fiscal year 2027 and beyond. The provisions will apply to claims arising on or after the effective date, with certain tax-related provisions taking effect for taxable years beginning January 1, 2026.

Statutes affected:
introduced version: 7-2-18.22, 41-5-3, 41-5-6, 41-5-7