Summary:

 Senate Bill 444 (SB 444):  This legislation modifies the Medical Malpractice Act to require that the amount of any punitive damage award be determined by a judge, not the jury. It also maintains that punitive damages are a healthcare provider’s personal liability (unless covered by a specific insurance contract) and clarifies that, starting January 1, 2027, the patient’s compensation fund will no longer cover any portion of a judgment or settlement for malpractice injuries or deaths caused by hospitals or outpatient facilities after December 31, 2026.

 

Legislation Overview:

 Senate Bill 444 (SB 444):  The bill amends the Medical Malpractice Act (NMSA 1978, Sections 41-5-1 through 41-5-29) to clarify how punitive damages are awarded in a medical malpractice lawsuit, specifically transferring the power to determine the amount of punitive damages from a jury to a judge.
1. Punitive Damages Decided by a Judge
a.	Under current law, if a jury finds that punitive damages are warranted, the jury normally decides how much punitive damages to award.
b.	New Language: The amendment adds a subsection stating that the amount of punitive damages against a healthcare provider “shall be determined by a judge.”
Note that this does not eliminate the possibility of punitive damages but changes who calculates the final dollar amount.
2. Medical Expenses and Punitive Damages:
a.	The bill reaffirms that awards for medical care and related benefits are not capped by the standard liability limit under the Medical Malpractice Act.
b.	Punitive damages remain a personal liability for the health care provider unless an insurance policy specifically includes punitive damages coverage.
3. Coverage Under the Patient’s Compensation Fund:
a.	Payments for punitive damages, or claims above a provider’s liability limit, cannot come from the patient’s compensation fund unless a health care provider’s insurance policy explicitly covers such damages.
4.  Claims Against Hospitals or Outpatient Facilities:
a.	Beginning January 1, 2027, if an injury or death caused by a hospital or outpatient facility occurred after December 31, 2026, no amounts from any judgment or settlement will be paid from the patient’s compensation fund. In other words, these claims must be satisfied by the hospital or outpatient facility themselves or their insurance, not the fund.