Myth 2: Hospitals shouldn’t be included in the Medical Malpractice Act — the law should apply to doctors only.

Jan 18, 2026 | Myth-Busting

Fact:

Modern medicine is delivered through integrated hospital systems, and most physicians work inside them.

  • A significant majority of New Mexico physicians are hospital-employed or hospital-based (higher than national trends).
  • Nationally, only 47% of physicians remain in private practice (AMA).
  • When doctors become hospital employees, hospitals become legally responsible for their care.

If hospitals were removed from the Act:

  • Their liability exposure would become unlimited
  • Insurance costs would spike
  • High-risk specialties — such as OB, trauma, surgery, and ICU — could become unsustainable
  • Many New Mexico hospitals, especially rural ones, could not obtain affordable coverage

Including hospitals protects patient access, not corporate interests.

Source:

  • American Medical Association. (2022). Physician Practice Benchmark Survey: Private Practice Edition. AMA Research.
  • New Mexico Legislative Health & Human Services Committee. (2023–2024). Testimony on provider employment trends.
  • New Mexico Courts, Corrections & Justice Committee. (2023). Hearing on malpractice and hospital liability framework.