As session nears end, medical malpractice bill passes House on overwhelming vote

SANTA FE — With just a few days left in this year's 30-day session, a high-profile legislative tourniquet aimed at stabilizing New Mexico's medical malpractice laws is headed to the state Senate.

The House voted 66-3 on Saturday to approve legislation described by backers as a fair balance that makes the state more attractive to doctors while still protecting patients' rights.

The bill, House Bill 99, drew support from both Republicans and Democrats alike in a debate that only lasted about 20 minutes. Previous committee hearings on the bill had stretched for hours.

House Minority Leader Gail Armstrong, R-Magdalena, said the legislation wasn't perfect but is still "much much better" than current medical malpractice law.

"This is a reasonable compromise that will help us assure our doctors that they're valued here and bring new providers," added Rep. Christine Chandler, D-Los Alamos, the bill's lead sponsor.

The only three "no" votes were cast by Reps. Janelle Anyanonu of Albuquerque, Angelica Rubio of Las Cruces and Patricia Roybal Caballero of Albuquerque. All three are Democrats.

However, the measure's fate is still far from certain despite the decisive vote.

It now advances to the Senate, where a proposal to limit attorney fees in medical malpractice cases stalled during last year's 30-day legislative session.

Before a full Senate vote, the measure would have to win approval in the Senate Judiciary Committee, where it was assigned Saturday.

Sen. Joseph Cervantes, D-Las Cruces, the committee's chairman, said in an interview the panel would likely hold a hearing on the measure early next week.

"We realize the importance to many people, and we will do our customary good work on the bill," Cervantes told the Journal.

But he also said a special session on medical malpractice could be a good idea in order to allow for additional time to study the issue. Cervantes is a personal injury attorney but does not handle medical malpractice cases.

New Mexico's medical malpractice laws have emerged as a top issue during this year's session, amid a statewide health care provider shortage and rising insurance premiums for hospitals and providers alike. 

Gov. Michelle Lujan Grisham has urged lawmakers to pass legislation on the issue, even after talks broke down last month between hospitals, physician groups, trial attorneys and other stakeholders.

The governor has said she would consider calling a special session if no bill is passed before the session ends Feb. 19, saying legislators have "got to get it done." 

After Saturday's vote, Lujan Grisham said New Mexicans expect the Senate to expedite consideration of the House-approved bill.

"With this bill, we’re not choosing between patients and providers — we're choosing both," the governor said in a statement. "(The bill) protects patients who have been harmed by medical malpractice while making it possible for physicians to practice here without fear of bankruptcy." 

Health care groups laud bill's passage

The House's approval of the medical malpractice bill drew praise Saturday, with New Mexico Medical Society President Robert Underwood calling it an "important step" toward restoring stability and predictability to the state's health care environment.

"Physicians want to focus on caring for patients, not navigating an increasingly uncertain liability landscape," Underwood said. "This bill helps ensure that our state remains a place where clinicians can continue practicing, hospitals can remain strong, and patients can receive the care they rely on."

The New Mexico Hospital Association also released a statement in support of the measure, saying rising medical malpractice insurance premiums are impeding the recruitment of new physicians and threatening essential services.

"Without meaningful reform, these pressures will continue to limit access, particularly in rural and underserved areas," the hospital association said.

In its current form, the bill would create a multi-tiered cap on punitive damages in medical malpractice cases. New Mexico currently has no limits on punitive damages, which has resulted in sizable damage awards against hospitals in recent years.

In contrast, the state does cap compensatory damages that cover actual losses such as medical bills and lost wages

While dollars amounts could increase in future years due to inflation, the punitive damage cap would be set at about $1 million for independent physicians and clinics, $6 million for locally owned hospitals and $15 million for larger corporate-owned hospitals.

That higher cap would apply to more than 30 hospitals statewide, including five Presbyterian Healthcare System hospitals and five Lovelace hospitals.

Meanwhile, the bill would also increase the legal threshold for punitive damages to be awarded in medical malpractice cases. That change would align New Mexico's laws with many other states' laws, Chandler said.

Ethical implications could emerge 

The pressure to pass legislation dealing with medical malpractice laws has grown amid concerns that some hospitals could close due to rising costs and difficulties in hiring physicians.

A coalition of more than 40 business groups, labor unions and public policy organizations have thrown their support behind Chandler's bill during this year's session, as other medical malpractice bills have fallen by the wayside. 

However, the New Mexico Trial Lawyers Association has questioned whether the legislation would actually improve health care access around the state.

"Accountability is a New Mexico value," Ray Vargas, a board member of the trial lawyers group said Saturday. "Punitive damages are the only thing that makes multi-billion dollar corporate hospital systems think twice about sacrificing patient safety for profit." 

Given those swirling political winds, and with the medical malpractice bill now advancing to the Senate, some senators are already coming under scrutiny for potential conflicts of interest.

The state Ethics Commission on Friday issued an advisory opinion that concluded that it would not be a violation of the state's Governmental Conduct Act for any legislators who work as attorneys to vote on medical malpractice language.

However, the advisory opinion pointed out Senate rules do require senators to recuse themselves if they have a direct personal or financial interest in the legislation at hand.

Senate Majority Leader Peter Wirth, D-Santa Fe, has in recent years represented clients in medical malpractice cases, while Sen. Katy Duhigg, D-Albuquerque, works for a law firm that handles such cases.

Two other state senators — Democrat Martin Hickey of Albuquerque and Republican Rex Wilson of Ancho — are retired health care system administrators.

Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on X at @DanBoydNM or reach him via email at dboyd@abqjournal.com