Report: New Mexico Earns Tort Reform Trailblazer Title As Lawmakers Tackle Doctor Shortage Crisis

The following information was released by the American Tort Reform Association (ATRA):

New Mexico earned a Tort Reform Trailblazer designation in the American Tort Reform Associations 2026 Legislative HeatCheck report after lawmakers passed landmark medical malpractice reform with overwhelming, bipartisan support led by a coalition of women legislators.

New Mexico lawmakers came together across party lines to fix a problem that was driving doctors out of the state, Lauren Sheets Jarrell said, ATRAs vice president and counsel for civil justice policy. This is exactly the kind of reform that helps patients and providers alike.

House Bill 99 sets tiered limits on punitive damages in medical malpractice lawsuits roughly $1 million for independent providers and clinics, $6 million for locally owned hospitals and $15 million for larger hospital systems with the caps adjusting annually for inflation. The law also raises the evidentiary bar for punitive damages, requiring patients to show clear and convincing evidence that a provider acted in bad faith or with reckless or malicious intent, and requires judicial review before such claims can go to trial.

The bill passed the House 66-3 and the Senate 40-2 more than 95% of lawmakers in favor and Gov. Michelle Lujan Grisham signed it into law March 6. Five women lawmakers from both parties led the effort: Democratic Reps. Christine Chandler, Dayan Hochman-Vigil and Sarah Silva, Republican Rep. Gail Armstrong and Democratic Rep. Doreen Y. Gallegos. Armstrong serves as House minority floor leader and Hochman-Vigil as majority whip.

Its not every day you see the minority floor leader and the majority whip team up on the same bill, but thats exactly what happened here, Sheets Jarrell said. This was a genuinely bipartisan effort to solve a real problem for New Mexico families.

According to the Office of the Governor, New Mexico faces a shortage of more than 5,000 health care professionals, with 32 of the states 33 counties experiencing critical gaps in care. More than 65% of physicians practicing in New Mexico say theyre considering leaving, and more than 80% point to punitive damages and malpractice insurance costs as the main reason. New Mexico is the only state in the country to have lost physicians over the past five years.

When doctors cant afford malpractice insurance, patients pay the price they wait months for care or drive hours to see a specialist, Sheets Jarrell said. Setting clear, predictable limits on punitive damages while still protecting patients who are genuinely harmed is how you keep doctors in New Mexico.

Recent data shows that excessive litigation costs New Mexico families nearly $4,590 a year in a tort tax for a family of four, or $1,147 per person. Thats enough to buy nearly 287 pounds of roasted Hatch green chile, according to ATRAs report. Excessive tort costs also contribute to the loss of 20,451 jobs and $2.4 billion in economic output statewide each year, along with $126.2 million in lost state government revenue.

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