Myth 7: The malpractice system is working fine — the problem is just corporate mismanagement.

Feb 17, 2026 | Myth-Busting

Fact:

If the system were functioning well, we would not see:

  • Persistent hospital and clinic closures
  • Specialty care shortages
  • Multi-month wait times
  • A shrinking insurer pool 
  • Medical service lines being discontinued
  • Rising out-of-state patient migration for basic care

Liability instability is one of several structural issues driving the broader crisis — and it must be addressed alongside workforce development and reimbursement reform.

Sources:

  • WTW/MPLA. (2025). New Mexico Market Overview.
  • New Mexico Hospital Association. (2023–2024). Testimony on service reductions and liability pressures.
  • New Mexico Office of the Superintendent of Insurance. (2023–2024). Carrier participation data.
  • HRSA. (2024). Health Professional Shortage Area Designations.