New Mexico 2025 Regular Session

New Mexico House Bill HB378 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 378
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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39	39	MEXICO
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42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Rod Montoya and Gail Armstrong
48	48	AN ACT
49	49	RELATING TO MEDICAL MALPRACTICE; AMENDING THE DEFINITION OF
50	50	"OCCURRENCE" IN THE MEDICAL MALPRACTICE ACT; LIMITING THE
51	51	AMOUNT OF DAMAGES THAT CAN BE AWARDED DUE TO A MEDICAL
52	52	MALPRACTICE CLAIM; REQUIRING PAYMENTS FROM THE PATIENT'S
53	53	COMPENSATION FUND TO BE MADE AS EXPENSES ARE INCURRED.
54	54	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
55	55	SECTION 1. Section 41-5-3 NMSA 1978 (being Laws 1976,
56	56	Chapter 2, Section 3, as amended) is amended to read:
57	57	"41-5-3. DEFINITIONS.--As used in the Medical Malpractice
58	58	Act:
59	59	A. "advisory board" means the patient's
60	60	compensation fund advisory board;
61	61	B. "control" means equity ownership in a business
62	62	entity that:
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90	90	(1) represents more than fifty percent of the
91	91	total voting power of the business entity; or
92	92	(2) has a value of more than fifty percent of
93	93	that business entity;
94	94	C. "fund" means the patient's compensation fund;
95	95	D. "health care provider" means a person,
96	96	corporation, organization, facility or institution licensed or
97	97	certified by this state to provide health care or professional
98	98	services as a doctor of medicine, hospital, outpatient health
99	99	care facility, doctor of osteopathy, chiropractor, [podiatrist ]
100	100	podiatric physician, nurse anesthetist, physician's assistant,
101	101	certified nurse practitioner, clinical nurse specialist or
102	102	certified nurse-midwife or a business entity that is organized,
103	103	incorporated or formed pursuant to the laws of New Mexico that
104	104	provides health care services primarily through natural persons
105	105	identified in this subsection. "Health care provider" does not
106	106	mean a person or entity protected pursuant to the Tort Claims
107	107	Act or the Federal Tort Claims Act;
108	108	E. "hospital" means a facility licensed as a
109	109	hospital in this state that offers in-patient services, nursing
110	110	or overnight care on a twenty-four-hour basis for diagnosing,
111	111	treating and providing medical, psychological or surgical care
112	112	for three or more separate persons who have a physical or
113	113	mental illness, disease, injury or rehabilitative condition or
114	114	are pregnant and may offer emergency services. "Hospital"
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143	143	includes a hospital's parent corporation, subsidiary
144	144	corporations or affiliates if incorporated or registered in New
145	145	Mexico; employees and locum tenens providing services at the
146	146	hospital; and agency nurses providing services at the hospital.
147	147	"Hospital" does not mean a person or entity protected pursuant
148	148	to the Tort Claims Act or the Federal Tort Claims Act;
149	149	F. "independent outpatient health care facility"
150	150	means a health care facility that is an ambulatory surgical
151	151	center, urgent care facility or free-standing emergency room
152	152	that is not, directly or indirectly through one or more
153	153	intermediaries, controlled or under common control with a
154	154	hospital. "Independent outpatient health care facility"
155	155	includes a facility's employees, locum tenens providers and
156	156	agency nurses providing services at the facility. "Independent
157	157	outpatient health care facility" does not mean a person or
158	158	entity protected pursuant to the Tort Claims Act or the Federal
159	159	Tort Claims Act;
160	160	G. "independent provider" means a doctor of
161	161	medicine, doctor of osteopathy, chiropractor, [podiatrist ]
162	162	podiatric physician, nurse anesthetist, physician's assistant,
163	163	certified nurse practitioner, clinical nurse specialist or
164	164	certified nurse-midwife who is not an employee of a hospital or
165	165	outpatient health care facility. "Independent provider" does
166	166	not mean a person or entity protected pursuant to the Tort
167	167	Claims Act or the Federal Tort Claims Act. "Independent
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196	196	provider" includes:
197	197	(1) a health care facility that is:
198	198	(a) licensed pursuant to the Public
199	199	Health Act as an outpatient facility;
200	200	(b) not an ambulatory surgical center,
201	201	urgent care facility or free-standing emergency room; and
202	202	(c) not hospital-controlled; and
203	203	(2) a business entity that is not a hospital
204	204	or outpatient health care facility that employs or consists of
205	205	members who are licensed or certified as doctors of medicine,
206	206	doctors of osteopathy, chiropractors, [podiatrists ] podiatric
207	207	physicians, nurse anesthetists, physician's assistants,
208	208	certified nurse practitioners, clinical nurse specialists or
209	209	certified nurse-midwives and the business entity's employees;
210	210	H. "insurer" means an insurance company engaged in
211	211	writing health care provider malpractice liability insurance in
212	212	this state;
213	213	I. "malpractice claim" includes any cause of action
214	214	arising in this state against a health care provider for
215	215	medical treatment, lack of medical treatment or other claimed
216	216	departure from accepted standards of health care that
217	217	proximately results in injury to the patient, whether the
218	218	patient's claim or cause of action sounds in tort or contract,
219	219	and includes but is not limited to actions based on battery or
220	220	wrongful death; "malpractice claim" does not include a cause of
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249	249	action arising out of the driving, flying or nonmedical acts
250	250	involved in the operation, use or maintenance of a vehicular or
251	251	aircraft ambulance;
252	252	J. "medical care and related benefits" means all
253	253	reasonable medical, surgical, physical rehabilitation and
254	254	custodial services and includes drugs, prosthetic devices and
255	255	other similar materials reasonably necessary in the provision
256	256	of such services;
257	257	K. "occurrence" means all [injuries to a patient
258	258	caused by health care providers' successive acts or omissions
259	259	that combined concurrently to create a malpractice claim ]
260	260	claims for damages from all persons arising from harm to a
261	261	single patient, no matter how many health care providers,
262	262	errors or omissions contributed to the harm ;
263	263	L. "outpatient health care facility" means an
264	264	entity that is hospital-controlled and is licensed pursuant to
265	265	the Public Health Act as an outpatient facility, including
266	266	ambulatory surgical centers, free-standing emergency rooms,
267	267	urgent care clinics, acute care centers and intermediate care
268	268	facilities and includes a facility's employees, locum tenens
269	269	providers and agency nurses providing services at the facility.
270	270	"Outpatient health care facility" does not include:
271	271	(1) independent providers;
272	272	(2) independent outpatient health care
273	273	facilities; or
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302	302	(3) individuals or entities protected pursuant
303	303	to the Tort Claims Act or the Federal Tort Claims Act;
304	304	M. "patient" means a natural person who received or
305	305	should have received health care from a health care provider,
306	306	under a contract, express or implied; and
307	307	N. "superintendent" means the superintendent of
308	308	insurance."
309	309	SECTION 2. Section 41-5-6 NMSA 1978 (being Laws 1992,
310	310	Chapter 33, Section 4, as amended) is amended to read:
311	311	"41-5-6. LIMITATION OF RECOVERY.--
312	312	A. Except for punitive damages and past and future
313	313	medical care and related benefits, the aggregate dollar amount
314	314	recoverable by all persons for or arising from any injury or
315	315	death to a patient as a result of malpractice shall not exceed
316	316	six hundred thousand dollars ($600,000) per occurrence. [for
317	317	malpractice claims brought against health care providers if the
318	318	injury or death occurred prior to January 1, 2022. In jury
319	319	cases, the jury shall not be given any instructions dealing
320	320	with this limitation.
321	321	B. Except for punitive damages and past and future
322	322	medical care and related benefits, the aggregate dollar amount
323	323	recoverable by all persons for or arising from any injury or
324	324	death to a patient as a result of malpractice shall not exceed
325	325	seven hundred fifty thousand dollars ($750,000) per occurrence
326	326	for malpractice claims against independent providers; provided
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355	355	that, beginning January 1, 2023, the per occurrence limit on
356	356	recovery shall be adjusted annually by the consumer price index
357	357	for all urban consumers.
358	358	C. The aggregate dollar amount recoverable by all
359	359	persons for or arising from any injury or death to a patient as
360	360	a result of malpractice, except for punitive damages and past
361	361	and future medical care and related benefits, shall not exceed
362	362	seven hundred fifty thousand dollars ($750,000) for claims
363	363	brought against an independent outpatient health care facility
364	364	for an injury or death that occurred in calendar years 2022 and
365	365	2023.
366	366	D. In calendar year 2024 and subsequent years, the
367	367	aggregate dollar amount recoverable by all persons for or
368	368	arising from an injury or death to a patient as a result of
369	369	malpractice, except for punitive damages and past and future
370	370	medical care and related benefits, shall not exceed the
371	371	following amounts for claims brought against an independent
372	372	outpatient health care facility:
373	373	(1) for an injury or death that occurred in
374	374	calendar year 2024, one million dollars ($1,000,000) per
375	375	occurrence; and
376	376	(2) for an injury or death that occurred in
377	377	calendar year 2025 and thereafter, the amount provided in
378	378	Paragraph (1) of this subsection, adjusted annually by the
379	379	prior three-year average consumer price index for all urban
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408	408	consumers, per occurrence.
409	409	E. In calendar year 2022 and subsequent calendar
410	410	years, the aggregate dollar amount recoverable by all persons
411	411	for or arising from any injury or death to a patient as a
412	412	result of malpractice, except for punitive damages and past and
413	413	future medical care and related benefits, shall not exceed the
414	414	following amounts for claims brought against a hospital or a
415	415	hospital-controlled outpatient health care facility:
416	416	(1) for an injury or death that occurred in
417	417	calendar year 2022, four million dollars ($4,000,000) per
418	418	occurrence;
419	419	(2) for an injury or death that occurred in
420	420	calendar year 2023, four million five hundred thousand dollars
421	421	($4,500,000) per occurrence;
422	422	(3) for an injury or death that occurred in
423	423	calendar year 2024, five million dollars ($5,000,000) per
424	424	occurrence;
425	425	(4) for an injury or death that occurred in
426	426	calendar year 2025, five million five hundred thousand dollars
427	427	($5,500,000) per occurrence;
428	428	(5) for an injury or death that occurred in
429	429	calendar year 2026, six million dollars ($6,000,000) per
430	430	occurrence; and
431	431	(6) for an injury or death that occurred in
432	432	calendar year 2027 and each calendar year thereafter, the
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461	461	amount provided in Paragraph (5) of this subsection, adjusted
462	462	annually by the consumer price index for all urban consumers,
463	463	per occurrence.
464	464	F. The aggregate dollar amounts provided in
465	465	Subsections B through E of this section include payment to any
466	466	person for any number of loss of consortium claims or other
467	467	claims per occurrence that arise solely because of the injuries
468	468	or death of the patient.
469	469	G.] B. In jury cases, the jury shall not be given
470	470	any instructions dealing with the limitations provided in this
471	471	section.
472	472	[H.] C. The value of accrued medical care and
473	473	related benefits shall not be subject to any limitation.
474	474	[I.] D. Except for an independent outpatient health
475	475	care facility, a health care provider's personal liability is
476	476	limited to [two hundred fifty thousand dollars ($250,000) ] two
477	477	hundred thousand dollars ($200,000) for monetary damages and
478	478	medical care and related benefits as provided in Section 41-5-7
479	479	NMSA 1978. Any amount due from a judgment or settlement in
480	480	excess of [two hundred fifty thousand dollars ($250,000) ] two
481	481	hundred thousand dollars ($200,000) shall be paid from the fund
482	482	[except as provided in Subsections J and K of this section.
483	483	J. An independent outpatient health care facility's
484	484	personal liability is limited to five hundred thousand dollars
485	485	($500,000) for monetary damages and medical care and related
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514	514	benefits as provided in Section 41-5-7 NMSA 1978. Any amount
515	515	due from a judgment or settlement in excess of five hundred
516	516	thousand dollars ($500,000) shall be paid from the fund.
517	517	K. Until January 1, 2027, amounts due from a
518	518	judgment or settlement against a hospital or hospital-
519	519	controlled outpatient health care facility in excess of seven
520	520	hundred fifty thousand dollars ($750,000), excluding past and
521	521	future medical expenses, shall be paid by the hospital or
522	522	hospital-controlled outpatient health care facility and not by
523	523	the fund. Beginning January 1, 2027, amounts due from a
524	524	judgment or settlement against a hospital or hospital-
525	525	controlled outpatient health care facility shall not be paid
526	526	from the fund.
527	527	L. The term "occurrence" shall not be construed in
528	528	such a way as to limit recovery to only one maximum statutory
529	529	payment if separate acts or omissions cause additional or
530	530	enhanced injury or harm as a result of the separate acts or
531	531	omissions. A patient who suffers two or more distinct injuries
532	532	as a result of two or more different acts or omissions that
533	533	occur at different times by one or more health care providers
534	534	is entitled to up to the maximum statutory recovery for each
535	535	injury]."
536	536	SECTION 3. Section 41-5-7 NMSA 1978 (being Laws 1992,
537	537	Chapter 33, Section 5, as amended) is amended to read:
538	538	"41-5-7. MEDICAL EXPENSES AND PUNITIVE DAMAGES.--
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567	567	A. Awards of past and future medical care and
568	568	related benefits shall not be subject to the limitations of
569	569	recovery imposed in Section 41-5-6 NMSA 1978.
570	570	B. The health care provider shall be liable for all
571	571	medical care and related benefit payments until the total
572	572	payments made by or on behalf of it for monetary damages and
573	573	medical care and related benefits combined equals the health
574	574	care provider's personal liability limit as provided in
575	575	Subsection [I] D of Section 41-5-6 NMSA 1978, after which the
576	576	payments shall be made by the fund.
577	577	C. Payments made from the fund for medical care and
578	578	related benefits shall be made as expenses are incurred.
579	579	[C.] D. Beginning January 1, 2027, any amounts due
580	580	from a judgment or settlement against a hospital or outpatient
581	581	health care facility shall not be paid from the fund if the
582	582	injury or death occurred after December 31, 2026.
583	583	[D.] E. This section shall not be construed to
584	584	prevent a patient and a health care provider from entering into
585	585	a settlement agreement whereby medical care and related
586	586	benefits shall be provided for a limited period of time only or
587	587	to a limited degree.
588	588	[E.] F. A judgment of punitive damages against a
589	589	health care provider shall be the personal liability of the
590	590	health care provider. Punitive damages shall not be paid from
591	591	the fund or from the proceeds of the health care provider's
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620	620	insurance contract unless the contract expressly provides
621	621	coverage. Nothing in Section 41-5-6 NMSA 1978 precludes the
622	622	award of punitive damages to a patient. Nothing in this
623	623	subsection authorizes the imposition of liability for punitive
624	624	damages where that imposition would not be otherwise authorized
625	625	by law."
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