Proposed Legislation Advances Balanced, Common-Sense Medical Malpractice Insurance Reforms to Stabilize Care Delivery
ALBUQUERQUE, N.M. (Jan. 26, 2026) – The New Mexico Hospital Association, the state’s leading advocacy voice for local hospitals, today announced its support for House Bill 99, Medical Malpractice Changes, which has been introduced in the 2026 New Mexico Legislative Session to address rising malpractice costs and protect access to care for New Mexicans.
As communities across the state face growing challenges with accessing healthcare – particularly in rural and underserved area – escalating medical malpractice insurance premiums are placing increasing strain on hospitals and driving physicians out of New Mexico.
“Healthcare access should not depend on where you live or whether your community hospital can afford rapidly rising liability costs,” said Troy Clark, President and CEO of the New Mexico Hospital Association. “HB 99 takes a thoughtful, common-sense approach to addressing medical malpractice costs so hospitals and physicians can focus on delivering the care their communities need.”
Introduced by Representative Christine Chandler (D-43), HB 99 advances several reforms to stabilize the medical liability environment while preserving patient protections, which include:
- Clarifying the definition of a single malpractice occurrence, ensuring that the number of providers involved in a patient’s care does not artificially multiply claims or liability exposure.
- Ensuring medical cost damages reflect actual expenses, limiting awards to amounts that were paid or are still owed, rather than inflated or written-off charges.
- Extending hospitals’ participation in the Patient’s Compensation Fund (PCF) through 2029, preserving an essential safeguard that protects access to care for injured patients.
- Requiring PCF payments for medical care to be made as expenses are incurred, aligning compensation with patient needs.
- Establishing clear standards for punitive damages, requiring a higher burden of proof, capping awards in proportion to compensatory damages caps and ensuring the PCF is not used to pay punitive awards.
“Over the past five years, malpractice insurance costs in New Mexico have skyrocketed and it’s not just unsustainable, it’s threatening access throughout our state,” Clark said. “HB 99 is a tangible step the Legislature can take this session to stabilize healthcare in New Mexico, and these reforms will not add to our state’s budget. Without immediate action, hospitals throughout our state may be forced to reduce or eliminate services, making it even harder for New Mexicans to receive primary and specialty care close to home. We look forward to working with Representative Chandler and lawmakers on a bipartisan solution to ensure New Mexicans can get the care they need, when and where they need it.”
To learn more, please visit supportnmhospitals.com.
About the New Mexico Hospital Association:
NMHA is the nonpartisan advocate and supporter of 48 community hospitals and the patients and communities they serve—and of hospital healthcare champions in public office. We work with others to advance public policy to create a healthier New Mexico by protecting and expanding access to quality care.
