City, County accuse Las Cruces hospital of violating lease

EL PASO, Texas ( KTSM ) – A notice of material breach was delivered to Memorial Medical Center in Las Cruces on Thursday, Aug. 29, following allegations that the hospital turned away cancer patients who couldn’t afford treatment.

As we previously reported, the New Mexico Department of Justice (NMDOJ) launched an investigation into the Memorial Medical Center last month, after being accused of refusing to treat cancer patients, denying or requiring full upfront payments from several uninsured or Medicaid-eligible patients, failing to screen patients for financial assistance, and denying medical services to patients, violating New Mexico law.

During a news conference held Friday morning, Aug. 30, the Las Cruces City Manager Ikani Taumoepeau addressed the notice of breach and said the City would hold itself and its partners accountable, according to a news release sent by the City of Las Cruces.

“The City’s legal team alleges Memorial Medical Center violated the lease agreement which calls for them to provide expanded health care services to those unable to pay the full cost of healthcare services rendered to them. The agreement also calls for the hospital to prepare a monthly cost report for lessors and the operating board of the costs of expanded care during the previous month served along with number of patients served,” read the news release.

The City is demanding that Memorial Medical Center:

• Provide all documents related to requests made for expanded care between years 2018 and 2024.
• Provide all documents relating to Memorial Medical Center’s denial of requests for expanded care services in the same timeframe.
• Provide all documents relating to annual capital expenditures in connection with the operation of the hospital.
• Provide all reports setting forth the costs of expanded care services provided between 2018 and 2024.
• Develop an annual report describing the fulfillment of the lessee’s obligations under the lease by September 30, 2024.
• Provide all annual reports describing the fulfillment of the lessee’s obligation under the lease developed for the years 2018 through 2024.
• Provide a detailed outline of its plan to remedy the defaults identified regarding the denial to provide expanded care services within 30 days or an explanation why it cannot within 30 days.

Both City and County leaders agreed that they would like to see Memorial Medical Center meet its obligations and continue to serve vulnerable populations in the community, according to the news release.

KTSM reached out to Memorial Medical Center and provided the following statement:

Memorial Medical Center received the notice of breach from the City of Las Cruces late yesterday. We believe we are compliant and have not breached the terms of the lease and asset purchase agreements and are responding in accordance with the obligations outlined in both. Our hospital is committed to a positive partnership with the City of Las Cruces and Doña Ana County and working together to build a healthier community, today and into the future. We will continue collaborating with the City and County to identify and resolve any areas of concern as quickly as possible.

Memorial Medical Center

For the latest news, weather, sports, and streaming video, head to KTSM 9 News.