N.M. Stat. » N.M. Stat. / Chapter 41 / Article 5
New Mexico Statutes

N.M. Stat. § 41-5-7 (2026)

Medical expenses and punitive damages.

✓ current as of May 2026
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A. Awards of past and future medical care and related benefits shall not be subject
to the limitations of recovery imposed in Section 41-5-6 NMSA 1978.

    B. The health care provider shall be liable for all medical care and related benefit
payments until the total payments made by or on behalf of it for monetary damages and
medical care and related benefits combined equals the health care provider's personal
liability limit as provided in Subsection I of Section 41-5-6 NMSA 1978, after which the
payments shall be made by the fund.

    C. Beginning January 1, 2027, any amounts due from a judgment or settlement
against a hospital or outpatient health care facility shall not be paid from the fund if the
injury or death occurred after December 31, 2026.

   D. This section shall not be construed to prevent a patient and a health care
provider from entering into a settlement agreement whereby medical care and related
benefits shall be provided for a limited period of time only or to a limited degree.

   E. A judgment of punitive damages against a health care provider shall be the
personal liability of the health care provider. Punitive damages shall not be paid from
the fund or from the proceeds of the health care provider's insurance contract unless the
contract expressly provides coverage. Nothing in Section 41-5-6 NMSA 1978 precludes
the award of punitive damages to a patient. Nothing in this subsection authorizes the
imposition of liability for punitive damages where that imposition would not be otherwise
authorized by law.

History: 1978 Comp., § 41-5-7, enacted by Laws 1992, ch. 33, § 5; 1992, ch. 33, § 6;
2021, ch. 16, § 4.

                                      ANNOTATIONS

Repeals and reenactments. — Laws 1991, ch. 264, § 7 repealed former 41-5-7 NMSA
1978, as amended by Laws 1991, ch. 264, § 6, and enacted a new 41-5-7 NMSA 1978,
effective July 1, 1992.

Laws 1992, ch. 33, § 5 repealed former 41-5-7 NMSA 1978, as amended by Laws
1991, ch. 264, § 6, and as enacted by Laws 1991, ch. 264, § 7, and enacted a new
section, effective April 1, 1992.

The 2021 amendment, effective January 1, 2022, provided that awards of past and
future medical care and related benefits as a result of an act of malpractice are not
subject to the limitations of recovery imposed in Section 41-5-6 NMSA 1978, and
provided that beginning January 1, 2027, any amounts due from a judgment or
settlement against a hospital or outpatient health care facility shall not be paid from the
patient's compensation fund if the injury or death occurred after December 31, 2026; in
the section heading, deleted "Future" and added "and punitive damages"; deleted
former Subsections A and B, and redesignated former Subsection C as Subsection A; in
Subsection A, after "Awards of", added "past and", and after "subject to the", deleted
"six hundred thousand dollar ($600,000) limitation" and added "limitations of recovery";
deleted former Subsection D and redesignated former Subsection E as Subsection B; in
Subsection B, after "combined equals", deleted "two hundred thousand dollars
($200,000)" and added "the health care provider's personal liability limit as provided in
Subsection I of Section 41-5-6 NMSA 1978", and deleted "patient's compensation"
preceding "fund"; added new a Subsection C and redesignated former Subsection F as
Subsection D; deleted former Subsection G, which related to court findings on the
estimated value of future medical care, and redesignated former Subsection H as
Subsection E; and in Subsection E, deleted "patient's compensation" preceding "fund",
and after "punitive damages", deleted "on a derivative basis".

The 1992 amendment, effective April 1, 1995, in Subsection C, substituted "six
hundred thousand dollars ($600,000)" for "five hundred thousand dollar ($500,000)".

Lump sum payments for future medical expenses are prohibited (decided prior to
2021 amendment to the Medical Malpractice Act). — Where plaintiff and defendant
settled a medical malpractice case, but where the superintendent of insurance declined
to disburse the agreed amount from the patient's compensation fund because, in their
view, the payment for lump sum future medical expenses, a term of the settlement,
violated the Medical Malpractice Act, 41-5-1 NMSA 1978 to 41-5-29 NMSA 1978, and
where the district court revoked its approval of the settlement agreement based on the
superintendent's objections, the district court did not err in denying plaintiff's motion to
enforce the settlement, because the plain language of 41-5-7(D) NMSA 1978 disallows
payment of future medical expenses in a lump sum. Murphy v. Pediatrix Cardiology of
N.M., P.C., 2026-NMCA-001, cert. granted.

Law reviews. — For article, "Medical Malpractice Legislation in New Mexico," see 7
N.M.L. Rev. 5 (1976-77).

Am. Jur. 2d, A.L.R. and C.J.S. references. — Validity of state statute providing for
periodic payment of future damages in medical malpractice action, 41 A.L.R.4th 275.

Future disease or condition, or anxiety relating thereto, as element of recovery, 50
A.L.R.4th 13.
Notes of Decisions
Cited in 24 cases (7 in the last 5 years), 1976–2025 · leading case: Siebert v. Okun, 485 P.3d 1265 (N.M. 2021).
Sort: Relevance Newest Treatment
Siebert v. Okun, 485 P.3d 1265 (N.M. 2021). · cites it 11× “Section 41-5-7. {7} The jury in this case awarded Plaintiff $2,600,000 in total damages.”
Siebert v. Okun, 2021 NMSC 016 (N.M. 2021). · cites it 12× “Section 41-5-7. {7} The jury in this case awarded Plaintiff $2,600,000 in total damages.”
Roberts v. Sw. Cmty. Health Servs., 837 P.2d 442 (N.M. 1992). · cites it 5× “To achieve this goal, the legislature offered health care providers “benefits” such as malpractice liability coverage, Section 41-5-25; limitations of malpractice awards, Section 41-5-6; limitations of personal liability of health care providers for future medical expenses,…”
Baker v. Hedstrom, 2013 NMSC 043 (N.M. 2013). · cites it 6× “In exchange for the burdens placed on patients who receive medical care from qualified health care providers, the Act provides the following benefits to them: the ability to recover from the patient’s compensation fund, Section 41-5-25(G); assurance that future medical costs…”
Salopek v. Friedman, 2013 NMCA 87 (N.M. Ct. App. 2013). · cites it 4× “]” Section 41-5-7(B). Payment “shall be made as expenses are incurred.”
Davis v. Traub, 565 P.2d 1015 (N.M. 1977). · cites it 3× “The State argues that inasmuch as Judge Sanchez appointed O’Hearn a grand jury aide pursuant to § 41-5-7 N.M. S.A.1953 (2 Repl.Vol. 6,1972) this was sufficient authorization for him to be present.”
Baker v. Armstrong, 744 P.2d 170 (N.M. 1987). · cites it 2× “NMSA 1978, § 41-5-7(H) (Repl.Pamp. 1986).”
McAneny v. Catechis, 534 P.3d 1007 (N.M. Ct. App. 2023). · cites it 2× “Section 41-5-7(E) (1992, amended 2021). But, the Fund is part and parcel of the MMA and the structure created therein to help maintain a viable system of medical care and claim resolution in New Mexico.”
Buckingham v. Health South Rehab. Hosp., 952 P.2d 20 (N.M. Ct. App. 1997). · cites it 4× “See NMSA 1978, § 41-5-7(A) (Repl.Pamp.1996). In a typical workers' compensation case the worker proves the medical expenses that have been incurred up to the time of the hearing before the WCA.”
Leger v. Gerety, 2022 NMSC 007 (N.M. 2021). “See § 41-5-7 (1992); § 41-5-25 (1992, as amended 2021).”
Leger v. Gerety, 444 P.3d 1036 (N.M. Ct. App. 2018). · cites it 2× “"); § 41-5-13 (discussing a "claim for malpractice arising out of an act of malpractice"); § 41-5-7(A) ("In all malpractice claims where liability is established, the jury shall be given a special interrogatory asking if the patient is in need of future medical care and related…”
Fowler-Propst v. Dattilo, 807 P.2d 757 (N.M. Ct. App. 1991). · cites it 2× “The very presence of statutory mechanisms to adjust for future events in assessing damages — such as the fund created by the Medical Malpractice Act to pay future medical bills, see NMSA 1978, Section 41-5-7 (Repl.Pamp.1989), and the provisions of the Workers’ Compensation Act…”
Show all 24 citing cases →
— N.M. Stat. § 41-5-7(A) — 6 cases
Buckingham v. Health South Rehab. Hosp., 952 P.2d 20 (N.M. Ct. App. 1997). “See NMSA 1978, § 41-5-7(A) (Repl.Pamp.1996). In a typical workers' compensation case the worker proves the medical expenses that have been incurred up to the time of the hearing before the WCA.”
Siebert v. Okun, 485 P.3d 1265 (N.M. 2021). “Section 41-5-7. {7} The jury in this case awarded Plaintiff $2,600,000 in total damages.”
Hamel v. Winkworth, 692 P.2d 58 (N.M. Ct. App. 1984).
Siebert v. Okun, 2021 NMSC 016 (N.M. 2021). “Section 41-5-7. {7} The jury in this case awarded Plaintiff $2,600,000 in total damages.”
Leger v. Gerety, 444 P.3d 1036 (N.M. Ct. App. 2018). “"); § 41-5-13 (discussing a "claim for malpractice arising out of an act of malpractice"); § 41-5-7(A) ("In all malpractice claims where liability is established, the jury shall be given a special interrogatory asking if the patient is in need of future medical care and related…”
— N.M. Stat. § 41-5-7(B) — 9 cases
Salopek v. Friedman, 2013 NMCA 87 (N.M. Ct. App. 2013). “]” Section 41-5-7(B). Payment “shall be made as expenses are incurred.”
Baker v. Hedstrom, 2013 NMSC 043 (N.M. 2013). “In exchange for the burdens placed on patients who receive medical care from qualified health care providers, the Act provides the following benefits to them: the ability to recover from the patient’s compensation fund, Section 41-5-25(G); assurance that future medical costs…”
Roberts v. Sw. Cmty. Health Servs., 837 P.2d 442 (N.M. 1992). “To achieve this goal, the legislature offered health care providers “benefits” such as malpractice liability coverage, Section 41-5-25; limitations of malpractice awards, Section 41-5-6; limitations of personal liability of health care providers for future medical expenses,…”
Siebert v. Okun, 2021 NMSC 016 (N.M. 2021). “Section 41-5-7. {7} The jury in this case awarded Plaintiff $2,600,000 in total damages.”
Leger v. Gerety, 444 P.3d 1036 (N.M. Ct. App. 2018). “"); § 41-5-13 (discussing a "claim for malpractice arising out of an act of malpractice"); § 41-5-7(A) ("In all malpractice claims where liability is established, the jury shall be given a special interrogatory asking if the patient is in need of future medical care and related…”
— N.M. Stat. § 41-5-7(C) — 3 cases
Siebert v. Okun, 485 P.3d 1265 (N.M. 2021). “Section 41-5-7. {7} The jury in this case awarded Plaintiff $2,600,000 in total damages.”
Siebert v. Okun, 2021 NMSC 016 (N.M. 2021). “Section 41-5-7. {7} The jury in this case awarded Plaintiff $2,600,000 in total damages.”
Siebert v. Okun, M.D., 560 P.3d 7 (N.M. Ct. App. 2024).
— N.M. Stat. § 41-5-7(D) — 8 cases
Salopek v. Friedman, 2013 NMCA 87 (N.M. Ct. App. 2013). “]” Section 41-5-7(B). Payment “shall be made as expenses are incurred.”
Baker v. Hedstrom, 2013 NMSC 043 (N.M. 2013). “In exchange for the burdens placed on patients who receive medical care from qualified health care providers, the Act provides the following benefits to them: the ability to recover from the patient’s compensation fund, Section 41-5-25(G); assurance that future medical costs…”
Murphy v. Pediatrix Cardiology of N.M. (N.M. Ct. App. 2025).
Salopek v. Friedman, 2013 NMCA 087 (N.M. 2013).
Baker v. Hedstrom, 2013 NMSC 43 (N.M. 2013).
— N.M. Stat. § 41-5-7(E) — 4 cases
Siebert v. Okun, 485 P.3d 1265 (N.M. 2021). “Section 41-5-7. {7} The jury in this case awarded Plaintiff $2,600,000 in total damages.”
Siebert v. Okun, 2021 NMSC 016 (N.M. 2021). “Section 41-5-7. {7} The jury in this case awarded Plaintiff $2,600,000 in total damages.”
Roberts v. Sw. Cmty. Health Servs., 837 P.2d 442 (N.M. 1992). “To achieve this goal, the legislature offered health care providers “benefits” such as malpractice liability coverage, Section 41-5-25; limitations of malpractice awards, Section 41-5-6; limitations of personal liability of health care providers for future medical expenses,…”
McAneny v. Catechis, 534 P.3d 1007 (N.M. Ct. App. 2023). “Section 41-5-7(E) (1992, amended 2021). But, the Fund is part and parcel of the MMA and the structure created therein to help maintain a viable system of medical care and claim resolution in New Mexico.”
— N.M. Stat. § 41-5-7(F) — 1 case
Murphy v. Pediatrix Cardiology of N.M. (N.M. Ct. App. 2025).
— N.M. Stat. § 41-5-7(H) — 3 cases
Baker v. Hedstrom, 2013 NMSC 043 (N.M. 2013). “In exchange for the burdens placed on patients who receive medical care from qualified health care providers, the Act provides the following benefits to them: the ability to recover from the patient’s compensation fund, Section 41-5-25(G); assurance that future medical costs…”
Baker v. Armstrong, 744 P.2d 170 (N.M. 1987). “NMSA 1978, § 41-5-7(H) (Repl.Pamp. 1986).”
Roberts v. Sw. Cmty. Health Servs., 837 P.2d 442 (N.M. 1992). “To achieve this goal, the legislature offered health care providers “benefits” such as malpractice liability coverage, Section 41-5-25; limitations of malpractice awards, Section 41-5-6; limitations of personal liability of health care providers for future medical expenses,…”
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