Medical Malpractice Damages Cap
The bill reflects a significant shift in legal liability and financial responsibility within the healthcare sector. By increasing the caps on damages, the legislation aims to provide greater relief and compensation for victims of malpractice, especially in outpatient settings. This change could encourage individuals to pursue legitimate malpractice claims without the fear that their recovery would be limited by previous, lower caps. However, this could also lead to increased insurance premiums for healthcare providers due to higher potential payouts, affecting the overall cost of healthcare services in the state.
House Bill 88 is legislation aimed at amending the existing Medical Malpractice Act in New Mexico. The primary focus of the bill is to adjust the limitations on recoverable damages in malpractice cases against certain healthcare facilities that are not majority-owned or controlled by hospitals. As per the changes proposed, the aggregate total recoverable by patients or their families for injuries or deaths due to malpractice is capped differently based on the ownership status of the healthcare facility involved. For outpatient facilities not majority-owned by hospitals, the limit would rise to $750,000 for events occurring in 2022 and 2023, with substantial increases to $5 million and $5.5 million for subsequent years, adjusting thereafter annually for inflation. For hospitals or facilities owned by hospitals, limits would also see increases.
While proponents of HB88 argue that the amendments are necessary to ensure victims of medical malpractice are sufficiently compensated, opponents voice concerns about the resultant impact on healthcare costs and provider liability. Critics highlight that raising the damage limits could exacerbate the existing challenges faced by healthcare providers, particularly in rural areas where the availability of medical professionals is already strained. There are worries about the unintended consequences of increased legal risks leading to defensive practices in medicine, potentially driving away providers from high-risk specialties.