FAQ
Is private ownership of healthcare facilities responsible for the physician shortage?
No. When you or a family member needs healthcare, you are not focused on who owns the hospital or clinic. There are not enough doctors regardless of facility ownership. Many investor-owned healthcare facilities have been a part of our community for years. Physicians become employed by privately owned hospitals when financial pressures make independent practice impossible.
What’s the difference between economic damages, non-economic damages, and punitive damages?
Economic Damages are tangible losses such as medical expenses and lost wages. Economic damages are not subject to caps in New Mexico.
Non-economic damages are intangible losses like pain and suffering and emotional distress. Non-economic damages are capped at $750,000, with annual adjustments for inflation.
Punitive damages are awarded in cases where a medical provider has acted with malice, gross negligence or willful disregard for a patient’s safety. The purpose of punitive damages is to punish and deter misconduct; they are extremely rare.
Does capping damages in malpractice cases mean the injured patient will not be compensated for on-going healthcare needs?
No. Medical costs are considered economic damages and would not be subject to caps.
Will malpractice reform reduce malpractice insurance costs and increase the number of providers?
Yes. Medical malpractice reform can be expected to lower malpractice liability insurance premiums. Malpractice reform will make it easier to recruit and retain physicians because the practice environment will be improved.
Will eliminating the Gross Receipts Tax (GRT) for healthcare services solve the shortage?
No. Eliminating the GRT will relieve some of the financial burden on independent providers; alone it cannot solve the shortage.
Will joining the Interstate Compacts create greater access to specialists for New Mexicans?
Yes. Health care providers who are licensed in any state that participates in the compacts will be able to provide services in New Mexico, both in person and through telehealth.
Aren’t the increased premiums experienced by providers since the 2021 reforms really the result of the surcharge being charged for the Patient Compensation Fund (PCF)?
No. Studies show that surcharges do not increase the cost of malpractice premiums. When the Think New Mexico did the research of malpractice premiums being charged in other states, they compared insurance policies sold in New Mexico for providers that do not pay into the Patient Compensation Fund with the premium costs in other states. In addition, the American Medical Association 2023 study of malpractice premiums nationwide, explicitly excludes Patient Compensation Fund surcharges from states with a PCF.
When Texas reformed their Tort Act in 2023, liability caps were included. Was it true that Texas did not have an increase in physicians?
No. Texas has seen a steady increase in physicians since 2023.
Why are so many doctors leaving their practices and going to work for hospitals?
Escalating costs and low reimbursement are making it impossible for independent providers to maintain their practices.
What actions will help keep doctors in New Mexico?
Balancing the medical malpractice system
Reduce economic strain
Expand residency and specialty training slots
Increase loan forgiveness programs