Across the United States, doctors are concerned about malpractice lawsuits—but what occurs when state policies inadvertently turn into a magnet for such litigation? New Mexico presents a concerning case study that every healthcare provider should be aware of.
From 2019 to 2024, New Mexico saw a decrease of 248 active physicians; for a large state with a relatively small population, this is quite impactful. Rural areas suffer the most from this outflow. Both specialists and primary care physicians have departed, with many pointing to soaring malpractice insurance rates and a challenging litigation climate. Hospitals in rural regions have experienced malpractice insurance expenses surge from approximately $142,000 to almost $850,000 annually within just a few years. This financial burden endangers hospital closures, leaving patients hours away from critical healthcare services.
Unfortunately, this dilemma isn’t localized. Nearly 80 percent of malpractice claims filed in New Mexico come from out-of-state law firms, especially from Texas. Why is that? Texas enforces strict limits on malpractice damages that greatly restrict possible payouts. In contrast, New Mexico’s malpractice regulations permit higher compensatory damages, unlimited punitive damages, and no caps on attorney fees. The outcome is foreseeable: malpractice claims that might lead to moderate settlements in Texas escalate into multimillion-dollar lawsuits in New Mexico.
Recent unprecedented verdicts highlight the magnitude of this problem. Last year, a judgment of $412 million (yes, you read that right) against an Albuquerque clinic became the largest single medical malpractice verdict in U.S. history. Such results attract media attention—but they also create caution among insurers, put hospitals at financial risk, and make physicians reluctant to practice in the state.
For medical professionals, the indication is unmistakable: The environment surrounding malpractice directly affects patient care, physician health, and healthcare accessibility.
Transparency and accountability are paramount in this regard. It is crucial to identify who influences malpractice policy and litigation patterns—whether healthcare companies, insurers, trial lawyers, or advocacy organizations. New Mexico urgently requires an independent, nonpartisan inquiry that is clearly devoid of political pressure. Physicians, patients, and communities warrant transparency, evidence-based regulations, and reasonable malpractice safeguards across the country.
New Mexico’s situation imparts significant lessons for all states: Malpractice law doesn’t merely pertain to litigation or compensation. It is about maintaining healthcare access, physician availability, and patient safety. Doctors throughout the country should take heed—and advocate before similar issues arise in their states.
Patrick Hudson is a retired plastic and hand surgeon, former psychotherapist, and author. Educated at Westminster Hospital Medical School in London, he practiced for many years in both the U.K. and the U.S. before shifting his focus from surgical techniques to emotional healing—assisting physicians in dealing with the hidden burdens of their profession and the subtle ways medicine alters identity. Patrick is board-certified in both surgery and coaching, a Fellow of the American College of Surgeons and the National Anger Management Association, and holds advanced degrees in counseling, liberal arts, and healthcare ethics.
Through his national coaching practice, CoachingforPhysicians.com, which he established, Patrick offers one-on-one coaching and physician leadership training for doctors navigating intricate personal and professional challenges. He collaborates with clinicians seeking clarity, renewal, and stronger connections in their careers. His emphasis includes leadership development and emotional intelligence for physicians who frequently find themselves in leadership positions they did not anticipate.
Patrick is the author of the Coaching for Physicians series, which includes:
He also publishes under CFP Press, a small imprint he created for reflective writing in medicine. To explore his complete catalog, visit his Amazon author page.