The proposed bill, titled the "Rural Hospital Malpractice Liability Insurance Act," aims to support rural hospitals in New Mexico by creating a grant program to cover the costs of medical malpractice liability insurance premiums. The bill establishes the "rural hospital malpractice liability insurance trust fund," which will be a nonreverting fund in the state treasury, consisting of various sources of revenue, including appropriations and donations. Additionally, it creates the "rural hospital malpractice liability insurance program fund," which will be administered by the Department of Health. Rural hospitals can apply for premium grants, provided they meet specific eligibility criteria, including demonstrating coverage by an approved malpractice insurance policy and maintaining operations in health care underserved areas.

The bill also outlines the responsibilities of the Department of Health, which include developing application forms, eligibility criteria, and reporting requirements for hospitals receiving grants. An annual report will be submitted to the legislative finance committee and the legislative health and human services committee, detailing the hospitals that received grants, the amounts distributed, and the impact on financial stability and healthcare access. To fund this initiative, the bill appropriates $100 million from the general fund to the trust fund for fiscal year 2026 and beyond, with any unspent balance not reverting. The act is declared an emergency, necessitating immediate implementation for public health and safety.