Medical malpractice bill dies in Senate committee

A bill intended to counter the shortage of health care providers in New Mexico by making changes in the state's Medical Malpractice Act failed Friday to clear a Senate committee.

Members of the Senate Health and Public Affairs Committee voted 5-4 against the bill following a two-hour debate Friday evening.

Senate Bill 176, which sought to limit attorney fees in medical malpractice cases, drew strong opposition from trial lawyers and patients injured by medical malpractice. It was the only one of the six bills before the legislature that had a shot of passing at a time when New Mexicans are facing a critical shortage of doctors, in part because New Mexico is one of the most expensive states to insure for medical malpractice given the number of lawsuits filed here annually. Providers and insurers pay out over $100 million a year in medical malpractice settlements, as a percentage of premiums collected, by far more than every other state in the union. And, as the Journal reported last week, Democratic state legislators are by far the biggest recipients of trial lawyer money.

Discussion at times became emotional as lawmakers described personal health issues involving themselves and family members.

Sen. Cindy Nava, D-Bernalillo, who voted against SB 176, wept as she described surviving a brain tumor removed by a surgeon who has since left New Mexico for reasons she said unrelated to medical malpractice. Nava said she favors legislation that would invest in physicians and encourage them to come to New Mexico.

"I just don't see this piece of legislation doing that," she said.

Senate Bill 176 would end lump-sum payouts from the state's patient's compensation fund, which helps providers pay for malpractice settlements. Instead, it would require that payments be made as expenses are incurred by patients.

The bill, which had 24 sponsors as of Friday, also would cap attorney fees in malpractice cases at 25% in cases settled before trial and 33% if the case goes to trial.

A third provision on SB 176 would dedicate 75% of punitive damages to a new patient safety improvement fund administered by the state Department of Health. Money from the fund would be appropriated by the Legislature to improve patient safety and health care outcomes.

Nava and others expressed discomfort with the creation of the new fund that would receive the lion's share of punitive damages.

"I'm really offended by the idea of taking 75% of a punitive damage award from an injured party and giving it to a state-run fund," said Sen. Antoinette Sedillo Lopez, D-Albuquerque, who voted against the bill. "It takes away a portion of the money that the victim should get to punish the hospital for outrageous behavior."

The bill's failure to emerge from committee essentially kills any chance of a medical malpractice measure passing in this session, said Sen. Martin Hickey, D-Albuquerque, a sponsor of SB 176.

"I actually think that we were able to get the facts out, that trial lawyers are bringing cases without merit and getting settlements," said Hickey, who testified Friday in favor of the bill.

The bill's failure will hamper the state's ability to expand the physician workforce, he said.

Hickey told committee members that physicians and practice groups often feel compelled to settle lawsuits before trial to avoid the risk of large punitive damage award.

"That's what puts fear into the hearts of physicians in New Mexico," Hickey testified. Leaders of single-specialty practice groups say that "virtually every case now comes with the threat of punitive damages if they don't settle."

All settlements are listed in a national data base, which can make it harder for physicians to find jobs, he said.

The number of reported payments made in medical malpractice cases involving New Mexico physicians have increased from 84 in 2020 to 130 in 2024, according to the National Practitioners Data Bank.

Hickey also testified that several malpractice lawsuits have resulted in historically large jury awards in recent years, including a $412 million jury verdict in 2024 that he described as the largest-ever malpractice award in U.S. history.

That case involved a 66-year-old Rio Rancho widower who sued the now-closed NuMale Medical Center in Albuquerque after receiving alleged dangerous penile injections in 2017. The clinic was part of a Las Vegas, Nevada, chain that filed for bankruptcy in February, according to court records.

The 2000 lawsuit alleged the widower sought treatment for fatigue and weight management, but was misdiagnosed and treated for erectile dysfunction, according to his lawsuit. As a result, he was left with a scarred and nonfunctional penis, the lawsuit alleged.

A jury took less than four hours to award him $37 million in compensation for his lifetime medical needs and $375 million in punitive damages.

Sen. Angel Charley, D-Acoma, said a 25% cap on attorney fees would put New Mexico patients in a situation similar to those who rely for care on the Indian Health Service, which is subject to federal tort claims laws.

"That means attorneys will not take a medical malpractice lawsuits," said Charley, who voted against the measure. "I don't want this state to have the same kind of health care that we have on the reservation."

Committee members who voted against the bill were Nava, Charley, committee chair Sen. Linda Lopez, D-Albuquerque, and Sen. Shannon Pinto, D-Tohatchi.

Those supporting the bill were Hickey, Sen. Jay Block, R-Rio Rancho, Sen. Larry Scott, R-Hobbs, and Sen. David Gallegos, R-Eunice.

Lisa Curtis, an Albuquerque medical malpractice attorney, cheered the bill's defeat following the vote.

"It's a horrible bill," Curtis said. "It does nothing to fix the problems." She blamed the malpractice suits on hospital corporations that engage in ruthless cost-cutting and pay physicians based on their productivity.

"Nobody is willing to talk about the private equity guys that are choosing to put their money in the New Mexico healthcare system because it's so profitable," she said.

Fred Nathan, executive director of Think New Mexico, which helped draft the legislation, said the bill received strong support from both Democrats and Republicans.

"Naturally we're disappointed but we remain encouraged by the support it garnered," he said. The bill ultimately had 24 co-sponsors, including 12 Republicans and 12 Democrats. "This is a solid foundation that we can build on going forward."