In one of the most visible and possible influential medical malpractice rulings this year, the New Mexico Supreme Court maintained legislation on medical liability caps, which increased the limit from $600,000 to $750,000 as the new individual cap on non-economic damages.
“I do not know if it will have national repercussions since it is a decision reached by the New Mexico Supreme Court based on the New Mexico constitution, but it could provide persuasive authority for arguments to maintain caps for malpractice,”
said Nick Autio, general counsel for the New Mexico Medical Society.
According to Autio, the medical malpractice landscape in New Mexico has seen a number of developments since 2015, including allowing hospitals to participate in the patient compensation fund as part of reducing medical liability.
This year’s medical malpractice amendment was the most significant change in the law in 45 years. The changes reflect a changing legislative landscape in New Mexico, as recent elections voted out moderate Democratic candidates who were replaced with more liberal Democratic candidates.
“[The liberal democrats] do not view liability protection in the same light and that has largely contributed to the changes we have seen in the 2021 session,” Autio said.
The same legislation season has produced the Patient’s Compensation Fund Advisory Board that was established on July 1. The board is composed of nine members who are selected every year by their organization. There are two members from the New Mexico Hospital Association, New Mexico Medical Society and New Mexico Trial Lawyers Association, along with patient advocates and an additional member representing certified nurse practitioners.
The board reviews operations, data and processes with the administration of the fund, as well as advising the superintendent of insurance and provide an annual report to the legislature. The superintendent of insurance will contract with a licensed third-party administrator to administer the fund and provide the annual audit of the fund.
One of the board’s major decisions in the future may be dealing with the repercussions of the increased medical liability caps recently upheld by the New Mexico Supreme Court, which are still unknown and will be for a while.
“The increase makes it more difficult to recruit and retain physicians in New Mexico,” Autio said. “The state already has an urgent issue with a shortage of healthcare providers, which will only get worse. Over the next couple years, we will see the impact of the changes, we think it will need legislative action down the road, but we will see how this impacts the New Mexico health care system and the patient compensation fund.”
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