Dear Tamara,
Yesterday, another bipartisan bill was introduced to implement a major recommendation from our recent report, How to Solve New Mexico's Health Care Worker Shortage.
Senate Bill 176, sponsored by Senator Martin Hickey (D-Albuquerque and the only doctor in the legislature) and Senate Minority Whip Pat Woods (R-Curry, Harding, Quay & Union Counties) would reform New Mexico's medical malpractice system by:
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capping attorney's fees in medical malpractice attorney lawsuits;
- ending lump-sum payouts from the Patient Compensation Fund (PCF); and
- sending 75% of any punitive damages awarded in a medical malpractice cases to a new public fund designed to improve patient safety.
Please email your legislators and encourage them to support Senate Bill 176!
Senate Bill 176 is designed to shift New Mexico's medical malpractice system from a lawyer-centered system to a patient-centered system, while reducing the likelihood of malpractice in the future.
New Mexico currently has the second highest rate of medical malpractice lawsuits of any state in the nation, and medical malpractice insurance premiums in New Mexico are about twice as high as they are in other states in our region. The high cost of insurance and the high likelihood of being sued discourage doctors and other health care providers from practicing in New Mexico.
The bill adopts California's model for capping attorney's fees, in which the attorney may receive up to 25% of the money awarded if a case is settled, and 33% if a case goes to trial. Currently, there are no caps on attorney's fees in New Mexico. Every dollar that goes to the attorney is a dollar that does not go to the injured patient.
Senate Bill 176 also ensures that the Patient Compensation Fund (PCF), a public fund that pays the ongoing medical expenses of patients injured in malpractice, will cover those costs as a patient incurs them, for as many years as needed. The bill would end the recent practice of allowing lump-sum payouts from the PCF. An up-front lump-sum payout is meant to cover a patient's medical costs for the rest of their life, but it is based on an estimate. If that estimate is too low, a patient may run out of money for their medical care. However, the lump-sum payout is better for attorneys, since they receive their percentage of the funds up front rather than over time.
Finally, Senate Bill 176 would utilize punitive damages to improve patient safety and reduce future malpractice. Punitive damages are meant to be punishment for egregious misconduct; they are separate from the compensatory damages that are meant to compensate the patient. New Mexico allows unlimited punitive damages, which are a windfall for the attorneys bringing the cases (some of whom are based out of state), but they undermine medical care by draining millions of dollars out of the state's health care system. Senate Bill 176 would instead send 75% of any punitive damages to a new fund earmarked for improving patient safety and reducing medical malpractice.
Thank you for contacting your elected officials about these reforms!
Fred, Kristina, Susan, Mandi, Alfredo, Katie, and Marcus
Think New Mexico
