SANTA FE, N.M. (AP) New Mexico's highest court has ruled that businesses formed by doctors are covered by a state law that caps the damages that victims of medical malpractice can collect from health care providers. The state Supreme Court issued the ruling on Thursday, saying that medical professional corporations and limited liability companies fall under the law's definition of a health care provider.
At issue was whether the 1976 law applied only to licensed physicians, hospitals, outpatient clinics and certain others such as chiropractors. A corporation established by a group of doctors for tax or business purposes isn't licensed, however.
The court said that excluding the businesses formed by medical professionals would undermine the purpose of the law, which was to increase the availability of insurance coverage for malpractice claims.
