SANTA FE — A New Mexico House committee has approved a bill that would change the state’s medical malpractice law, including placing new limits on punitive damages and updating how certain payments are made to injured patients.

The House Judiciary Committee voted 10-0 to advance a substitute version of House Bill 99. The legislation would revise parts of the Medical Malpractice Act, clarify key definitions and make changes to the state’s patient compensation fund.

Supporters say the bill is aimed at improving access to health care by addressing concerns about high malpractice insurance costs and ongoing physician shortages. Opponents argue that limiting punitive damages could reduce accountability for hospitals and health systems.

Under the bill, punitive damages, which are intended to punish especially harmful conduct, could only be awarded if a patient proves by clear and convincing evidence that a health care provider acted maliciously, willfully, recklessly or in bad faith . Punitive damages could not be paid from the state’s patient compensation fund.

For independent doctors, smaller outpatient facilities and certain locally operated hospitals, punitive damages would be capped at the same level as existing limits on other monetary damages . For larger hospitals and hospital systems, punitive damages would be limited to no more than two and one-half times the current cap on monetary damages.

The bill does not change existing limits on compensation for medical bills. Awards for past and future medical care would continue to be exempt from statutory caps . However, the legislation clarifies that the value of medical care means the actual amount paid or owed by the patient or insurer, not the higher amount that may appear on an initial hospital bill.

The measure also requires that payments from the patient compensation fund for ongoing medical care be made as expenses are incurred, rather than in a lump sum .

In addition, the bill updates the definition of “occurrence” in malpractice cases. The change is intended to clarify how multiple acts or omissions during treatment are counted when determining recovery limits.

The patient compensation fund, which helps cover certain malpractice judgments that exceed a provider’s personal liability limit, would also see changes. The bill requires that hospital and outpatient facility surcharges be set at no less than the amount recommended by an actuary to fully fund current and projected claims.

The legislation would apply to medical malpractice claims that arise on or after its effective date.

House Bill 99 now moves to the full House for further debate.