RURAL HOSPITAL MALPRACTICE LIABILITY

HB 316 creates a state fund to cover malpractice insurance premiums for rural hospitals in New Mexico. It appropriates $100 million from the general fund to establish a trust fund that provides "premium grants" to eligible hospitals, defined as those operating in health care underserved areas and maintaining essential services. Hospitals must apply through the Department of Health, certify funds will only cover insurance premiums, and provide annual reports on financial stability and staffing. The program requires the Department to annually report on grant recipients, costs, and impacts on hospital operations. This direct policy change addresses rising insurance costs for rural facilities serving underserved communities.