NM HB187

Creates the Rural Hospital Malpractice Liability Insurance Fund as a nonreverting fund administered by the Department of Health to provide grants covering medical malpractice insurance premiums for rural hospitals

Appropriates $66 million from the general fund for fiscal year 2026 and subsequent years to fund the premium grants

Eligible rural hospitals must be located in rural or frontier areas, maintain operations in health care underserved areas, demonstrate malpractice insurance coverage, and certify grant funds will be used exclusively for premium payments

Requires the Department of Health to submit annual reports to legislative committees on grant recipients, amounts distributed, insurance costs, and effects on hospital financial stability, workforce, and patient access

Declared an emergency measure to take effect immediately upon passage