Jackpot justice and the high price of health care

A new national report warns that high profile jackpot justice continues to have real consequences for patients, providers, and the cost of care.

The 2025-2026 Judicial Hellholes report, released by the American Tort Reform Foundation, identifies eight jurisdictions where courts have repeatedly applied liability rules in ways that increase lawsuit abuse.

Los Angeles leads this year’s list after seeing a $1 billion nuclear verdict, widespread allegations of abusive litigation practices, and courts allowing unfounded liability theories to move forward. New York City follows closely, where a surge in staged accidents and inflated medical claims has driven up insurance costs and strained public resources. Other jurisdictions cited include Philadelphia, St. Louis, and parts of Illinois – all places that have become infamous for venue shopping.

These expanding and unpredictable verdicts can raise liability insurance premiums, increase the practice of defensive medicine, and make it harder for hospitals and physicians serving high risk patients to continue operating. The report includes warnings from health care leaders that some hospitals are now one lawsuit away from closing their doors, putting patient access to care at risk.

Although the report highlights several courts that have taken steps to curb meritless lawsuits and claims, the message is clear: when courts allow lawsuit abuse to continue, it’s patients that ultimately pay the price.

Click here to read a summary of this year’s report and its impact on access to affordable care.

New Mexico physicians issue familiar warning on liability risks

New Mexico’s physician shortage is once again front and center at the state’s Roundhouse, telling a familiar story on the impacts of a poor liability climate.

As reported by SourceNM, Las Cruces physicians traveled to Santa Fe this week to urge lawmakers to reform the state’s medical liability laws and tax policies, warning that continued inaction will further harm patient access to care.

The physicians offered valid reasons for their concern, given that between 2019 and 2024, New Mexico lost 248 physicians (8% of its total) while the rest of the country saw a gain of 44,000. Today, 32 of the state’s 33 counties are designated Health Professional Shortage Areas, and nearly 40% of New Mexico’s physicians are over the age of 60 and nearing retirement.

Doctors cited rising medical liability insurance premiums and the state’s gross receipts tax on medical services as key drivers pushing physicians to leave or avoid the state altogether. Those pressures, they argued, translate directly into fewer providers, longer wait times, and reduced access to affordable care for patients – particularly in rural and underserved communities.

“I think that the residents of New Mexico and physicians are saying, ‘Santa Fe, we have a problem,’” said Dr. Jana Williams of Dona Ana County.

The physicians offered a clear set of solutions, including reasonable limits on punitive damages and attorney’s fees, curbing venue shopping, and revisiting taxes that uniquely burden medical practices. Governor Michelle Lujan Grisham has said medical liability reform will be on the agenda for the upcoming legislative session, but lawmakers acknowledged procedural hurdles remain.

While this warning is not new, the consequences of delaying further attention to reforming the state’s medical liability laws are becoming harder to ignore. To understand more about the pursuit of major liability reforms in New Mexico, click here.

Wishing you a happy, and healthy, new year

As we head into 2026, the Health Coalition on Liability and Access and Protect Patients Now wish you and your loved ones a safe, healthy, and hopeful new year.

The year ahead brings a critical opportunity to refocus the national conversation on medical liability and its real-world impact on affordability and patient access to care.

Our grassroots network will continue working with policymakers across parties to advance federal solutions that reduce lawsuit abuse, support physicians, and help keep care accessible and affordable for the communities that depend on it.

Thank you for being part of this effort. We look forward to the work ahead in 2026 and to continuing our shared commitment to policies that protect patient access to quality medical care.