Medical Malpractice Changes
Additionally, SB449 introduces substantial changes to the handling of punitive damages in malpractice claims, stipulating that 75% of such awards will go to the State. These funds will be used to establish a Patient Safety Improvement Fund, directly linking punitive measures against healthcare providers with state-level initiatives aimed at enhancing patient safety and healthcare outcomes. This fund will be administered by the Department of Health, ensuring accountability in the use of these financial assets for the intended purpose.
Senate Bill 449 aims to amend and enhance the regulations surrounding medical malpractice litigation in New Mexico. The bill proposes a new set of requirements for determining the venue in malpractice cases, mandating that claims should be filed in the county where the medical treatment occurred. It seeks to limit recovery from the Patient's Compensation Fund, making provisions that necessitate payments from the fund to be made as expenses are incurred, rather than as lump sums at the end of litigation. This shift aims to improve the allocation of financial resources in managing malpractice claims while ensuring timely care for affected patients.
Notably, the bill generates significant debate regarding the limitation of attorney fees in malpractice claims, restricting attorneys to contingency fees of 25% prior to trial, and 33% afterwards. This has raised concerns among legal experts and advocates about the potential impact on injured patients' access to justice, as well as the overall viability of pursuing valid claims against healthcare providers. Critics argue that while the proposed changes may protect the interests of healthcare providers, they could inadvertently disadvantage patients seeking fair compensation for malpractice.