HOUSE BILL 195

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Reena Szczepanski

AN ACT

RELATING TO JUDGMENTS; PROHIBITING THE COLLECTION OF MEDICAL MALPRACTICE JUDGMENTS FROM AN INDEPENDENT PROVIDER'S PERSONAL INCOME OR ASSETS, EXCEPT IN CERTAIN CASES; PROHIBITING PLAINTIFFS IN MEDICAL MALPRACTICE CASES FROM MAKING CERTAIN FRIVOLOUS ALLEGATIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of Chapter 42, Article 10 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] JUDGMENTS AGAINST INDEPENDENT PROVIDERS.--

          A. A plaintiff who makes a medical malpractice claim pursuant to the Medical Malpractice Act shall not pursue, collect or execute on a judgment against the personal income of an independent provider or the personal assets owned by an independent provider if the court finds that the independent provider maintained:

                (1) qualification under the provisions of the Medical Malpractice Act pursuant to Section 41-5-5 NMSA 1978; or

                (2) an insurance policy with a policy limit sufficient to cover the applicable per-occurrence limit on recovery specified in Section 41-5-6 NMSA 1978.

          B. The court may reduce or nullify a damage award if the court finds the plaintiff made allegations that:

                (1) are irrelevant to the adjudication of the claims at issue;

                (2) are made primarily to coerce or induce an independent provider to settle; or

                (3) rely on an independent provider's personal income or assets.

          C. For the purposes of this section, "independent provider" means a natural person who is a licensed physician, chiropractic physician, podiatric physician, certified registered nurse anesthetist, physician assistant, certified nurse practitioner, certified clinical nurse specialist or certified nurse-midwife who is not an employee of a hospital or an outpatient health care facility. "Independent provider" does not mean a person or an entity protected pursuant to the Tort Claims Act or the Federal Tort Claims Act."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to all medical malpractice claims brought on or after the effective date of this act.

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