New Mexico Doctors Challenge Insurance Superintendent on Malpractice Fund

Four doctors are accusing New Mexico’s insurance superintendent of allowing major hospital chains to tap into a medical malpractice fund despite concerns of insufficient balances.

State district court documents show physicians including American Medical Association president-elect Barbara McAneny filed the lawsuit. It alleges New Mexico Insurance Superintendent John Franchini allowed 16 hospitals and dozens of outpatient care facilities to tap into an already depleted fund to pay for malpractice liabilities starting in 2009.

The lawsuit alleges that negotiations were conducted in secret by Franchini to access the fund that pays out malpractice liability claims to patients.

It seeks to void the superintendent’s actions and reset surcharges in accordance with new studies. Franchini says the allegations are without merit.