Texas is probably limiting malpractice suit damages because they are a significant contributor to our insane healthcare costs. The math above where a hospital is out a minimum of $200k for any suit that isn't thrown out is not restricted to Texas; this is a national issue with some Texas duck tape slapped on.
They are more likely limiting malpractice suit damages because hospitals and clinics donate to political campaigns, but people hurt by medical malpractice don't.
The end result is that doctors are essentially lawsuit-proof (as the minimum cost of a suit exceeds the maximum possible recovery) in Texas, and you have no recourse if yours was at fault.
That’s a good argument for it that I didn’t think of. But I can’t help but think this was likely just some business friendly thing that was lobbied for under the misleading label of “reform”