Dems Snub Medical Malpractice Reform

Long before the legislative session started, a full-page ad accosted readers with this headline: “Medical corporations & insurance companies blame patients harmed by medical malpractice for the healthcare crisis so they can distract us from the billions of dollars in profit that go to their out-of-state corporate headquarters.”

Whoa! Nobody is blaming patients who are victims of medical malpractice. And, looking at New Mexico’s ragged hospital network, there’s more red ink than black ink.

The New Mexico Medical Society has been clear that spiraling malpractice premiums are an obstacle to physician recruiting, but some Democrats still don’t see the urgency, and it’s hurting all of us. In October, Think New Mexico, a nonpartisan think tank, rolled out a plan to solve New Mexico’s healthcare worker shortage. One element involves reforming the state’s medical malpractice act. New Mexico ranks second highest in the nation for medical malpractice lawsuits per capita. The number is more than twice the national average. New Mexico’s medical malpractice insurance premiums are nearly twice those of Arizona, Colorado and Texas and still rising. And yet, many malpractice insurance companies lose money.

“The high cost of malpractice insurance, and the high likelihood of being sued discourage doctors and other health care workers from practicing in New Mexico,” the report concluded.

Right after Think New Mexico announced its plan, the above advertisement appeared, claiming “real solutions to the healthcare crisis.” It was paid for by New Mexico Safety Over Profti (NMSOP), a new group. Its website lists a spokeswoman but not offci ers, board members or funding sources. It appears to be closely aligned with the New Mexico Trial Lawyers Association.

NMSOP’s big concerns are “corporate greed” and “holding corporations responsible for harm.” The group wants you to believe our ills are the result of “medical corporations and insurance companies (that) prioritize profit to take back to their out of state headquarters and shareholders.”

To be fair, ownership by private equity firms and corporate giants is a huge issue, but that’s nationally and not so much here.

With this backdrop, Sen. Martin Hickey, D-Albuquerque and the Legislature’s only doctor, and Sen. Pat Woods, R-Broadview, introduced Senate Bill 176 to reform New Mexico’s medical malpractice system. The bill would cap attorney fees in medical malpractice lawsuits, end lump-sum payouts, and send 75% of punitive damages to a new public fund designed to improve patient safety.

SB 176 would cap fees at 25% of the money awarded if a case is settled or 33% if a case goes to trial. Currently, New Mexico has no limit on attorney fees. It would return to a pay-as-you-go system for the expenses of treatment instead of the lump-sum payouts delivered by Democrats and the trial lawyers in a dubious “reform” bill in 2021. The payout is based on an estimate.

What if the estimate is wrong?

And SB 176 would also use punitive damage verdicts to improve patient safety and reduce future malpractice. Currently, New Mexico allows unlimited punitive damages, which Think New Mexico considers “a windfall for the attorneys bringing the cases.”

This should not be a partisan issue. But a day after Republicans named malpractice insurance reform as a priority, three Albuquerque-area Democrats repeated NMSOP talking points, blaming “corporate greed” for healthcare issues.

Senate Majority Leader Peter Wirth, D-Santa Fe, defended the “compromises” in 2021 and 2023 that led us to this sorry state. He told the Albuquerque Journal that “all parties were on board and the measures passed with bipartisan support.” In fact, the so-called support by less enthusiastic lawmakers was only because they feared something worse.

“Undoing these important changes to the law now will only harm patients and allow insurance companies to evade responsibility for compensating hurting families,” said Wirth, a lawyer.

NMSOP couldn’t have said it better.

The governor recognizes the problem: “Insurance rates for doctors and healthcare providers shouldn’t be any higher in New Mexico than in neighboring states, and they most certainly shouldn’t be twice the national average.”

Her solution is state-sponsored medical malpractice insurance, but she hasn’t offered details.

Contrary to what you might hear, reformers do want to protect injured patients, but they would ratchet down attorney payouts from stratospheric to earthly.

Contact Sherry Robinson at info@nmopinions.com.

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