Fred Nathan, Founder and Executive Director of Think New Mexico, has expressed concerns over the unique challenges faced by New Mexico in retaining physicians. He attributes this issue to high malpractice premiums, low Medicaid rates, and excessive punitive awards. Nathan made these remarks during an appearance on the New Mexico Sun's "Suncast" podcast on YouTube.
"We're the only state...in the last 5 years to have lost doctors," said Nathan, Founder & Executive Director. "nationally, the number of doctors has gone up 44,000. they've created a legal environment where there's no cap on attorney's fees. We have the lowest standard for punitive damages and some of the highest judgments."
According to the episode’s notes, since 2019, New Mexico is the only state experiencing a decline in its number of doctors. Nathan links this trend to several factors: increasing malpractice premiums, comparatively low Medicaid reimbursement rates, taxes on medical services, and a litigation environment characterized by large verdicts. These issues have complicated hospital hiring processes, reduced specialty coverage in rural areas, and increased wait times compared to neighboring states and the national average.
A 2024 policy report from Think New Mexico highlights that the state's medical malpractice insurance loss ratio reached 183.6% in 2022. This figure represents the highest in the nation against a U.S. average of 73.5%, indicating that insurers paid approximately $1.84 in claims for every $1.00 received in premiums. The report suggests that consistently high loss ratios could lead insurers to raise rates, tighten underwriting standards, or exit the market altogether—further increasing costs for providers and limiting access to care.
In November 2024, an Albuquerque jury awarded over $412 million in a medical malpractice case involving harmful penile injections—a sum described by attorneys as the largest medical malpractice award ever given by a U.S. jury. This verdict exemplifies Nathan's concerns about exceptionally high punitive and compensatory awards influencing New Mexico’s liability climate for healthcare providers.
Think New Mexico is a nonpartisan policy institute founded and led by Nathan. He previously served as Special Counsel to New Mexico Attorney General Tom Udall from 1991 to 1998 and has contributed to passing bipartisan reforms across various sectors including health care transparency and education finance. The organization promotes citizen-friendly proposals through legislative partnerships while maintaining a small staff and tracking outcomes in annual policy reports.
