From Courtroom to Clinic: How New Laws Will Reshape Louisiana Healthcare Liability
This year’s legislative session brought sweeping law changes that impact healthcare organizations statewide. From a new modified comparative fault standard to expanding protections under the Medical Malpractice Act, these updates will redefine the balance between liability and patient care.
Read our latest blog for a clear breakdown of the changes and what they could mean for your organization.
The 2025 Legislative Session delivered a series of pivotal reforms that mark a turning point for potential impact for healthcare organizations across the state. From the adoption of a modified comparative fault standard to the expansion of protections under the Medical Malpractice Act, these updates bring overdue alignment between legal liability and practical realities of providing healthcare.
For hospitals, these reforms are advancements to help reduce exposure to unjust claims, clarify liability boundaries, and extend protections for administrative and operational staff.
This article outlines some of the key legislative changes that impact claims from the recent session and explains the impact in navigating Louisiana’s complex impasse between healthcare and litigation.
Louisiana Legislature 2025 Highlights
Transitioning to Modified Comparative Fault
In 2025, the Louisiana legislature enacted legislation in House Bill 431 that changes Louisiana’s pure comparative fault statute to modified comparative fault.
Under pure comparative fault, a plaintiff’s recovery is reduced by the plaintiff’s percentage of fault regardless of the amount of fault attributed to the plaintiff. A plaintiff ninety-nine percent at fault could still recover damages under pure comparative fault.
The Louisiana legislature revised Louisiana Code of Civil Procedure Article 2323 to transition to a modified comparative fault system effective January 1, 2026.
According to the changes:
If a person suffers injury, death, or loss partly as the result of his own negligence and partly as a result of the fault of another person or persons, the following shall apply:
- If the degree or percentage of negligence attributed to the person sufferinginjury, death, or loss is equal to or greater than fifty-one percent, then the personsuffering injury, death, or loss shall not be entitled to recover damages.
- If the degree or percentage of negligence attributed to the person sufferinginjury, death or loss is less than fifty-one percent, then the amount of damagesrecoverable shall be reduced in proportion to the degree or percentage ofnegligence attributed to the person suffering the injury, death, or loss.
The Act also provides that, where the issue of comparative fault is submitted to the jury, the jury shall be instructed on the effect of this Article. This new law will only apply to accidents that occur on or after January 1, 2026.
Furthermore, this new law bars recovery when the degree or percentage of negligence attributed to the plaintiff is equal to or greater than fifty-one percent. If the plaintiff’s fault is less than fifty-one percent, the damages will be reduced proportionally based on the plaintiff’s percentage of fault.
Changes to Administrative Claims
In this session, the Louisiana legislature also amended several definitions in the Medical Malpractice Act that would potentially expand coverage under the Act. Senate Bill 134 amended the definitions of “health care,” “health care provider,” and “malpractice.”
The amendment to the definition of “health care” expands the definition to include:
“administration, service, or care related to policies and procedures and the administration thereof, staffing, custodial services by licensed or certified staff”
In addition, the definition provides:
“This includes all acts associated with the medical treatment of an individual, whether directly related to clinical care or performed in an administrative or managerial capacity necessary for the delivery of such care.”
The amendment to the definition of “health care provider” expands the definition to include:
“corporation which may provide any kind of health care whatsoever”
The definition of “malpractice” was also amended to broaden the list of specific acts in the definition by using the term “including but not limited to,” and to also specifically include “staffing” in the definition.
In addition, like the definition of “health care,” the definition of “malpractice” also provides this clarification:
“This includes all acts associated with the medical treatment of an individual, whether directly related to clinical care or performed in an administrative or managerial capacity necessary for the delivery of such care.”
These amendments became law on August 1, 2025. The primary purpose of the amendments is to include management companies that operate nursing homes within the Act’s definitions. However, the broad definitions will also likely expand the protections of the Medical Malpractice Act to various administrative claims that have been asserted against hospitals that some courts have found were outside the scope of the Act.
Collateral Source Rule: Narrowing What Plaintiffs Can Recover
In the 2025 session, the Louisiana legislature again made changes to medical expenses recoverable by a plaintiff. The current law limits medical expenses recoverable to the amount actually paid to the health care provider by a health insurer, Medicare, or Medicaid, but it also provides that the court shall award 40% of the difference between the amount billed and the amount actually paid by health insurers or Medicare.
Here are the key changes incoming:
Recovery Amounts Limited to Paid Costs
The 2025 amendment removes the language about awarding 40% of the difference between the amount billed and the amount actually paid by health insurers and Medicare, removing the cost of procurement provision. Under the amendment, the claimant may only recover the amount of medical expenses paid by a health insurer or Medicare to a health care provider.
Awareness of Paid Costs
The amendment also provides that in a trial to recover past medical expenses paid by health insurers and Medicare under this section, the trier of fact shall be informed of the amounts billed and amounts actually paid for medical expenses incurred by the claimant.
Categorization of Recoverable Expenses
According to the amendment, recovery of past medical expenses other than under this section shall include the amounts paid to a medical provider by or on behalf of the claimant, and the amounts remaining owed to a medical provider, including medical expenses secured by a contract or statutory privilege, lien or guarantee.
Negotiation Stipulations
The Act also provides that where the attorney for the claimant has entered into a pre-negotiated agreement with a medical provider of the claimant where the medical provider has agreed to accept as full compensation an amount less than the amount billed, the claimant’s recovery of medical expenses shall be limited to the amount
actually paid pursuant to the pre-negotiated agreement, and any applicable cost sharing amounts paid or owed by the claimant.
The statute still provides that it does not apply to cases brought pursuant to Louisiana Revised Statutes 40:1231.1, et seq (Medical Malpractice Act) and the amendment adds that it also does not apply to any benefits received by a party through a policy of automobile liability insurance that provides for medical payments coverage. The Act would apply to plaintiffs in GL claims.
The Act specifically provides that it shall have prospective application only and shall not apply to causes of action filed prior to its effective date of January 1, 2026.