New study ranks the best states for doctors — What about NM?

As National Doctors’ Day approaches on March 30, a new report from personal finance website WalletHub ranks New Mexico among the worst states in the nation for physicians, highlighting ongoing challenges in attracting and retaining medical professionals in the state.

WalletHub’s 2026 report on the Best and Worst States for Doctors placed New Mexico 45th overall, putting it near the bottom nationally. The rankings evaluated all 50 states and the District of Columbia across 19 key metrics, including physicians’ average annual wages, hospitals per capita, malpractice insurance costs, physician burnout rates, and the quality of each state’s public hospital system.

While family physicians earn an average annual salary of around $238,000 nationwide, the WalletHub study suggests that financial opportunity alone does not determine where doctors choose to practice. Instead, the report found that working conditions, insurance costs, and healthcare infrastructure play a major role in determining which states are most attractive to medical professionals.

According to the report, the top 10 best states for doctors in 2026 are Montana, Indiana, Louisiana, South Dakota, Minnesota, North Dakota, Missouri, Nebraska, Iowa, and Wisconsin. Many of these states ranked highly due to lower malpractice insurance costs, strong hospital systems, and higher average wages when adjusted for cost of living.

By contrast, the worst-performing states were Vermont, Maryland, Oregon, New Mexico, Illinois, the District of Columbia, Hawaii, Rhode Island, New Jersey, and New York. New Mexico’s low ranking reflects long-standing issues in the state’s healthcare system, including doctor shortages, rural access challenges, and high malpractice insurance costs, which have been cited by medical professionals as barriers to practicing in the state.

WalletHub analyst Chip Lupo said that where doctors choose to practice can have a major impact not only on their own financial success but also on patient outcomes and access to care.

“Setting up a practice in one of the best states for doctors can have a profound effect on your medical career,” Lupo said. “Not only will you be working in top-quality medical facilities and earning high salaries, you’ll be less likely to burn out, and pay less for malpractice insurance. Meanwhile, residents living in one of the best states for doctors will have access to quality healthcare at a reasonable cost.”

The report also highlighted several key national comparisons. Louisiana has the highest average annual wage for surgeons when adjusted for cost of living—three times higher than in the District of Columbia, which has the lowest. Mississippi has the lowest number of physicians per 1,000 residents, while the District of Columbia has the highest. Nebraska has the lowest annual malpractice liability insurance rates, at more than eight times lower than rates in New York, which are the highest in the country.

New Mexico’s low ranking comes as the state continues to struggle with physician shortages, particularly in rural areas, and as policymakers debate changes to malpractice laws, healthcare funding, and medical education programs aimed at keeping more doctors in the state.

The WalletHub report notes that states with strong hospital systems, lower insurance costs, and better working conditions tend to retain more medical residents and experience lower physician burnout rates—factors that ultimately improve healthcare access for residents.

The full WalletHub report, including methodology and state-by-state rankings, is available on the organization’s website.