PATIENT COMPENSATION FUND LIABILITY

SB 121 establishes a Patient Compensation Fund to handle medical malpractice claims in New Mexico, directly affecting hospitals, outpatient health care facilities, and insurers who pay annual surcharges. The bill requires health care providers to pay surcharges based on actuarial studies of the fund's claims data, with the threshold for fund claims rising from $200,000 to $250,000. It grants liability immunity to the private company administering the fund (third-party administrator) and mandates prorated payments if the fund is exhausted. The bill was referred to committees in January 2025 but was postponed indefinitely on June 3, 2025.