SANTA FE – The House of Representatives today passed legislation that would rein in skyrocketing medical malpractice claims, protect patients’ ability to seek compensation for harm and help expand the number of doctors practicing in New Mexico.

House Bill 99, commonly referred to as the “medical malpractice reform bill,” cleared the House of Representatives on a 66-3 vote. The measure — one of Governor Michelle Lujan Grisham’s top priorities for the final legislative session of her administration — now goes to the Senate for consideration. With the 30-daysession ending at noon on Thursday, the governor urges the New Mexico Senate to send HB 99 to her desk without delay.

“With this bill, we’re not choosing between patients and providers — we’re choosing both,” Gov. Lujan Grisham said. “HB 99 protects patients who have been harmed by medical malpractice while making it possible for physicians to practice here without fear of bankruptcy. New Mexicans, many of whom are waiting months to see a doctor, expect the Senate to put this bill on its calendar immediately and treat it with the urgency it requires with just a few days left in the session.”

HB 99, sponsored by Rep. Christine Chandler, establishes tiered caps on punitive damages that scale based on the size of the medical practice or facility: approximately $1 million for independent providers and clinics, $6 million for locally owned hospitals, and $15 million for larger hospital systems. The caps adjust annually for inflation.

The legislation also raises the evidentiary standard for punitive damages to “clear and convincing” evidence and requires judicial review before such claims can proceed to trial.

New Mexico faces a dire shortage of more than 5,000 health care professionals, with 32 of 33 counties experiencing critical gaps in care. More than 65% of physicians practicing in the state say they are considering leaving, and more than 80% cite punitive damages and malpractice insurance costs as the primary reasons.

New Mexico is the only state in the nation to have lost physicians over the past five years, a crisis that many health professionals attribute to the exorbitant cost of medical malpractice insurance in the state.

HB 99 received unanimous approval from the House Judiciary Committee after the governor convened weeks of negotiations among trial lawyers, lawmakers, and hospital executives. The bill is endorsed by House Democratic and Republican leadership and the New Mexico Hospital Association.