New Mexico lawmakers approve malpractice reform aimed at stabilizing rural health care

New Mexico lawmakers approved a bipartisan overhaul of the state’s medical malpractice system during the recent legislative session, a move supporters say will bring long‑needed stability to hospitals, clinics and independent providers, particularly in rural communities where recruiting physicians has grown increasingly difficult.

House Bill 99, passed with broad support in both chambers, clarifies liability standards for medical practices and sets new parameters for how malpractice claims are evaluated and compensated. The legislation follows several years of concern from health‑care leaders who warned that rising insurance costs and legal uncertainty were driving physicians out of the state.

Dr. Darren Shafer, president of Presbyterian Medical Group, said the reforms mark a significant step toward strengthening New Mexico’s health‑care workforce.

“We appreciate the Legislature’s thoughtful, bipartisan action on HB 99,” Shafer said in a statement. “The reforms create clearer standards and greater predictability in the malpractice environment, which are critical to long-term workforce planning and system stability. Just as important, they send a strong message that New Mexico values its physicians and reflects a shared commitment to protecting access to care for people across our state. A more stable legal environment strengthens our ability to recruit clinicians across multiple specialties and communities.”

State Rep. Rebecca Dow, who represented Socorro County and has long advocated for rural health‑care access, said the reforms were necessary to prevent further erosion of medical services outside major cities.

Dow said the previous system placed small hospitals and independent providers at a disadvantage, especially as insurance premiums climbed.

“We were seeing doctors who loved practicing in rural New Mexico but simply couldn’t absorb the financial risk anymore,” she said. “When you lose even one specialist in a rural county, the ripple effects are enormous, families travel farther, wait times increase and local hospitals struggle to maintain services.”

She added that the new law aligns New Mexico more closely with neighboring states, reducing the incentive for physicians to relocate across state lines. 

“We need every tool available to keep providers here,” Dow said. “This reform helps level the playing field.”

Rep. Dow, as a supporter of the bill, also pointed to the state’s ongoing Medicaid expansion and rising health‑care costs as factors that made reform urgent. Without changes, she said New Mexico risked further shortages in obstetrics, emergency medicine and other high‑liability specialties.

Local officials say the impact will be closely watched in communities like Socorro, where hospitals have struggled to recruit specialists and maintain consistent coverage in key departments.

The reforms take effect later this year, with state regulators expected to issue updated guidance for providers and insurers in the coming months.