Patient Compensation Fund Solvency
The bill imposes limitations on the recovery of past and future medical care benefits from the fund, requiring that benefits be paid only as expenses are incurred and not in lump-sum payments. This could streamline financial responsibility and utilization of funds, ensuring resources are allocated efficiently. Furthermore, starting January 1, 2027, any judgments or settlements against hospitals or outpatient facilities concerning injuries or deaths will not be covered by the fund, potentially influencing how these entities manage their liabilities.
Senate Bill 445 aims to amend the Medical Malpractice Act in New Mexico by introducing specific changes to the operations of the Patient's Compensation Fund. One of the critical features of this bill is the requirement for the Superintendent of Insurance to approve proposed settlements that involve payments from the Patient's Compensation Fund. This requirement is intended to enhance oversight and ensure that funds are being appropriately managed in accordance with the stipulated guidelines.
Notable points of contention arose around the implications of limiting the recovery from the fund and the added scrutiny on settlements. Supporters argue that these adjustments will enhance the solvency of the fund and create a more accountable system for patients receiving compensation. However, critics may raise concerns that these restrictions could impede victims' access to necessary funds for ongoing medical care, thus impacting patient rights and the overall efficacy of the compensation system.