Fred Nathan, founder and executive director of Think New Mexico, expressed concerns over potential hospital closures due to financial strains while the state's $5.8 billion healthcare fund remains unused. He made these remarks during a Suncast podcast on March 3.
"A hernia surgery in Gallup resulted in a $68 million jury award. The hospital doesn't have that money, and they're now facing bankruptcy," said Nathan, according to YouTube. "If they shut down, 56,000 people will be left without emergency care, turning the area into a medical desert overnight."
According to Nathan, New Mexico's medical malpractice environment has resulted in escalating insurance costs, with an insurance loss ratio of 183%. This means that for every dollar collected in premiums, insurers are paying out $1.83 in claims. Nathan indicated that this unsustainable situation is challenging hospitals' ability to maintain operations and could lead to further closures.
Senate Bill 176, titled "Medical Malpractice Changes," seeks to reform New Mexico’s malpractice laws to address rising insurance costs and improve conditions for healthcare providers. The bill is currently under review by the Senate Health and Public Affairs Committee. With New Mexico facing challenges in retaining doctors, SB 176 is part of broader legislative efforts aimed at creating a more balanced malpractice system and supporting medical professionals in the state.
The La Daily Post reports that Drs. Lawrence and Aedra Andrade are leaving Gallup, putting 9,000 patients at risk as high malpractice costs and taxes drive doctors out of New Mexico. The state ranks second in malpractice lawsuits per capita. SB 176 (capping attorney fees) and HB 344 (removing gross receipts tax) aim to alleviate these issues but face opposition from trial lawyers. Representative Rod Montoya warned that "Doctors can be sued out of existence in New Mexico."
According to Think New Mexico's website, from 1991 to 1998, Nathan served as Special Counsel to New Mexico Attorney General Tom Udall, playing a key role in legislative initiatives and managing the state's $1.25 billion tobacco lawsuit. He has also served on the boards of Santa Fe Preparatory School and the Thornburg Foundation and was a trustee of Williams College, his alma mater.
