A recent legal decision in New Mexico could adversely affect Texas physicians and New Mexico patients. This presentation discusses how this new issue is reminiscent of pre-tort reform years and what TMLT is doing to help.

1. WHAT EVERY
PHYSICIAN
NEEDS TO KNOW:
TEXAS TORT REFORM 2015

2. 1 HISTORY OF
TORT REFORM
• In the mid 1990s, an out-of-control legal system led to an upward trend in
Texas medical liability claim frequency and severity.
• By the early 2000s, Texas was in full medical liability crisis. Many insurers
left the state, curtailed the business they wrote, or went out of business
altogether.
• Unable to find affordable malpractice insurance, physicians changed their
practice structure, stopped performing high-risk procedures, left the state, or
retired early. The end result: patients had restricted access to health care.

3. 2 TMLT’S ROLE IN
TORT REFORM
SUCCESS
• TMLT helped found the Texas Alliance for Patient Access (TAPA), a consortium
of more than 200 health care providers and medical liability carriers. TAPA
analyzed medical liability tort laws and assisted in drafting legislation to
improve them.
• In 2003, the Texas legislature passed House Bill 4, The Texas Medical
Liability Act, that includes the cornerstone of the reforms: a $250,000 cap
on non-economic damages. The new law did not limit economic damages
for meritorious claims, but created an overall maximum amount per case of
$750,000 for non-economic damages.

4. 3• In September 2003, Texas voters passed Proposition 12, a constitutional
amendment that authorized the legislature to set liability caps. The caps
set out in HB 4 have withstood all judicial challenges to date.
• TMLT was the first physician carrier to reduce rates after the favorable vote
on Proposition 12. In general, physicians in Texas are paying less than half
for medical liability insurance than before tort reform.
TMLT’S ROLE IN
TORT REFORM
SUCCESS

5. 4 NEW MEDICAL
LIABILITY THREAT
HAS SURFACED
• A recent ruling in the Court of Appeals of the State of New Mexico, Montaño
v. Frezza, held that a New Mexico resident treated in Texas by a Texas
physician could file suit against that physician in New Mexico and subject the
physician to New Mexico law.
• If this ruling stands, Texas physicians will be negatively impacted because
New Mexico laws do not offer the same protections as either the Texas Tort
Claims Act or the Texas Medical Liability Act (HB 4).

6. 5 NEW MEDICAL
LIABILITY THREAT
HAS SURFACED
• The results could mimic pre-tort reform issues in Texas:
• higher insurance liability premiums;
• less availability of specialty and high risk care; and
• a reluctance of new physicians to relocate to or stay in the area.
• New Mexico patients who live along the New Mexico/Texas border are at risk
for losing access to health care in Texas. Texas physicians are more likely
to restrict elective care to these patients rather than submit to liability laws
reminiscent of the pre-tort reform years.

7. 6 WHAT TMLT IS
DOING & WHY
• TMLT is actively engaged in this issue because this ruling could close the door
to accessible medical care at the Texas/New Mexico border. Many health care
providers would not be able to accept the economic burden that would result
from the increased liability exposure.
• TMLT believes the decision in Montaño is contrary to the public policy that
promotes greater access to health care, and is submitting an amicus brief to
the New Mexico Supreme Court.

8. 7 THANKS &
HOW TO STAY
INFORMED
• We appreciate the widespread participation and support provided to
us by physicians and health care related entities statewide and in New
Mexico.
• To provide your feedback or learn more, please contact Jill McLain, TMLT
Governmental Relations, at jill-mclain@tmlt.org.
• To stay up-to-date on this issue, please visit the TMLT Newscenter where
we will share the latest news.

9. 8ABOUT TMLT:
With more than 17,500 physicians in its care, Texas Medical Liability Trust (TMLT)
provides malpractice insurance and related products to physicians. Our purpose is to
make a positive impact on the quality of health care for patients by educating, protecting,
and defending physicians. www.tmlt.org
Find us on:
PROTECTION FOR
A NEW ERA OF
MEDICINE