New Mexico Governor Signs Medical Malpractice Reform Bill into Law

After months of debate and negotiation, New Mexico Governor Michelle Lujan Grisham has signed House Bill 99 into law, enacting significant changes to the state’s medical malpractice act. The bill, which aims to address a severe doctor shortage, limits the amount of punitive damages juries can award in malpractice cases. The Senate passed the bill 40-2 on Tuesday night after stripping amendments added by the Senate Judiciary Committee in a vote of 25-17.

Key Provisions of House Bill 99

House Bill 99 establishes caps on punitive damages based on the type of healthcare provider involved:

• Independent Doctors: Punitive damages are capped at around $900,000.
• Independent Outpatient Clinics: The cap is set at $1 million.
• Locally Owned and Operated Hospitals: Punitive damages are capped at $6 million, aligning with existing caps for most compensatory damages.
• Large Hospitals and Hospital-Controlled Facilities: A higher tier caps punitive damages at two and a half times the limits established for local hospitals.

Contentious Path to Passage

The bill’s journey through the legislature was not without controversy. The Senate Judiciary Committee initially added 11 amendments, sparking concerns from Rep. Christine Chandler (D-Los Alamos), the bill’s sponsor, who argued the changes would undermine the bill’s intent to reduce insurance premiums for providers.

Senator Crystal Brantley (R-Elephant Butte) criticized the amendments as a “hijacking” by lawyers prioritizing their own interests over patients. Senator Katy Duhigg (D-Albuquerque) argued the amendments were necessary to address legal problems with the bill and provide clarity for judges and juries.

the Senate voted to remove the Judiciary Committee’s amendments before passing the bill.

Governor’s Support and Potential Special Session

Governor Lujan Grisham had strongly advocated for medical malpractice reform and had indicated she would call a special session if the legislature failed to pass a substantial overhaul of the law. The passage of HB 99 averts the need for a special session.

Concerns and Opposition

Opponents of the bill argue that capping punitive damages will limit the ability of malpractice victims to seek justice. Some lawmakers, including Senator Duhigg, questioned whether the bill would actually lead to lower insurance premiums and increased access to care, citing historical data suggesting otherwise.

Disclosure of Conflicts

Several members of the Senate Judiciary Committee disclosed potential conflicts of interest due to their involvement in medical malpractice law. Despite these disclosures, they participated in the debate and voting process, stating the bill would not directly impact their financial interests.

Source: https://searchlightnm.org/new-mexico-senate-sends-hard-fought-medical-malpractice-bill-to-governor/