Committee advances bill to shield certain personal assets of health-care providers from malpractice collection

A House committee on Feb. 17 advanced an amended substitute for House Bill 195, a measure that would prevent certain personal assets of named health‑care providers from being subject to collection after a medical‑malpractice judgment. The committee approved a motion to report the substitute favorably, 9‑0.

Supporters told the committee the bill responds to physicians’ fears about losing homes, college savings and other personally held assets after judgments. Deborah Condit, a registered lobbyist for the American College of Obstetricians and Gynecologists, said the bill "provides protections for physicians' personal assets while preserving accountability for malpractice" and argued the protections would help recruit and retain obstetricians in rural communities.

Opponents urged caution. Eric Lemasters, a Santa Fe teacher who spoke in opposition, recommended reforms that would expand legal representation for plaintiffs and said only a small portion of malpractice inquiries proceed with counsel; he warned that a few large awards can displace many smaller settlements.

Committee members questioned technical language, including how the bill defines an "independent provider" and the use of the term "natural person." Sponsors said the formulation targets personal (not corporate) assets and is intended to protect individuals regardless of their employment structure. Representative Romero moved the 'do pass' motion on the committee substitute as amended; Representative Nicole Chavez seconded. The clerk recorded nine votes in favor and none opposed, and the committee advanced the bill to the next stage.

The committee discussion focused on aligning statutory definitions with the Medical Malpractice Act and on ensuring the change protects personal assets without removing avenues of accountability for harmed patients. The next procedural step is committee reporting and scheduling for floor consideration.