The federal government could end up paying millions of dollars in a medical malpractice suit, just as a privately funded hospital would, a federal judge has ruled in a case that clarifies how state and federal law intersect on the issue.

The parents of a baby born in a federally funded hospital filed suit against the government under the Federal Tort Claims Act, which lifts the government's sovereign immunity and allows people to sue, because the doctor who handled the delivery fractured the baby's skull by improperly using forceps.

The child, now 2 years old, has severe and permanent injuries from the skull fractures, the parents allege. They are seeking more than $15 million for future medical expenses.