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New Mexico malpractice damages caps for 2026

Updated October 24, 2026 · Checked against the New Mexico Medical Malpractice Act as amended through HB 99 (2026)

The caps by provider type

Defendant	Cap for injuries in 2026
Hospital or hospital-controlled outpatient facility	$6,000,000 per occurrence (stepped up from $4M in 2022; adjusted for inflation from 2027)
Independent provider (for example, a doctor not employed by a hospital)	$750,000 base, adjusted each year for inflation since January 1, 2023
Independent outpatient facility	$1,000,000 for 2024 injuries, adjusted for inflation since
Any qualified provider, injury before January 1, 2022	$600,000

What is not capped

Medical care and related benefits, past and future, are outside the cap. Under HB 99 (2026) they are measured by the amounts actually paid or owed, not billed amounts that were written off.
Punitive damages are not part of the cap, but HB 99 caps them separately and raises the proof standard.

Juries are not told about the caps; the judge applies them after the verdict.

Who pays

A qualified provider's own liability generally stops at $250,000, with the Patient's Compensation Fund paying the rest up to the cap. Hospitals pay amounts above $750,000 themselves. The state insurance office has said hospitals are scheduled to leave the fund at the end of 2026.

No caps for non-qualified providers

The caps protect only providers that have qualified under the Act by carrying required insurance and paying the fund surcharge. Whether a provider qualified is one of the first things a lawyer checks.

Frequently asked questions

What is the malpractice cap for hospitals in New Mexico in 2026?

$6,000,000 per occurrence, excluding medical expenses and punitive damages.