New Mexico AG launches investigation into Memorial Medical Center in Las Cruces

New Mexico Attorney General Raúl Torrez said several current and former employees and patients at Memorial Medical Center alleged the hospital denied essential medical care.

Torrez said he expected more people to come forward as he announced this week that the New Mexico Department of Justice launched an investigation into the for-profit Las Cruces hospital. Among the reasons for the investigation are allegations that the hospital refused to treat indigent cancer patients, failed to screen patients for financial assistance and denied medical services to patients. Torrez cited reports of denied care or requiring uninsured or Medicaid-eligible patients to pay in full or pay up front.

"It is my judgement that the facts that were shared with our office will not only support the announcement today that we are opening an investigation into Memorial Medical Center, but to profoundly expand the scope of that investigation," Torrez said.

"It is apparent to me that decisions have been made and continue to be made from a standpoint that is primarily motivated by profit and maximizing the bottom line."

Scrutiny of Memorial Medical Center first surfaced in a nbcnews.com article in June that laid out similar allegations.

Memorial Medical Center CEO John Harris denied the allegations made in the article during presentations to both Las Cruces City Council and the Doña Ana County Board of County Commissioners in June. MMC has a 40-year lease agreement with the county and the city of Las Cruces.

In a statement on Tuesday, MMC said it was surprised to learn of the investigation initiated by the New Mexico Department of Justice.

"Memorial Medical Center was surprised to learn of this investigation by Attorney General Torrez during his press conference today. We remain committed to expanding access to care and being a good community partner in Las Cruces and Doña Ana County and will be cooperating fully with this investigation."

During the presentations in June, Las Cruces Councilors and County Commissioners requested more transparency from MMC, asking to see how much revenue was generated by the hospital which currently is owned by private equity firm Apollo Global Management.

On Tuesday, City Councilor Becky Corran said the hospital has yet to provide that information.

When asked if MMC has breached its agreement, Corran said, "We have started these conversations at a city level and we are in the process of figuring out the different levers of understanding what all is involved in the lease, as far as expected levels of care and the stewardship of the building and the facility that we jointly own with the county."

Cancer patients denied treatment

Barbara Quarell is a longtime Las Cruces resident and was a MMC nurse for six years, who was diagnosed with vaginal cancer in 2022.

Quarell said she was driving to the hospital to begin radiation treatment when a doctor at MMC called to inform her that MMC did not accept her insurance.

"At that time, I was paying $800 a month for my insurance and I just could not believe that a hospital in my town, my community, where I pay taxes, where I am a nurse and have taken care of so many people, wouldn't provide care to me," Quarell said during Tuesday's press conference at the Doña Ana County Government building.

Quarell instead relocated to Albuquerque to receive treatment.

"I would never in a million years refer someone to MMC," Quarell said. "There is not enough staff for the patient ratio. It is an unsafe place to be now."

Debbie Jo Minser said she was stunned at the beginning of the year when she was diagnosed with breast cancer despite no family history. Minser said she underwent surgery at MMC and when she went to an oncology follow up appointment, she was turned away after the hospital informed her that her Medicaid had "ended."

Minser said she spent the rest of the day scrambling to find insurance.

"There was no offer of self payment, there was nothing, it was just, 'We can't see you today,'" Minser said. "That is something people should not go through when their mind isn't right. It was shocking and scary and it's just not right."

Torrez said he expects additional patients and providers to come forward throughout the investigation. He also warned hospital management against retaliation against providers or staff members who may come forward.

"Any attempts to interfere with individuals who are associated with that institution and sharing information about its practices will not be looked on kindly and will be dealt with most severely by the Department of Justice," he said.

What is at stake for MMC?

Torrez described MMC as an institution that was "in desperate need of reform and correction."

And while an investigation is only in the beginning stages, Torrez said the investigation is focused on alleged denial of care instances that Torrez said would be in violation of state law. He said federal laws may also have been violated.

Torrez said the hospital could face civil liabilities and if proven true, those actions would consist of violations of state and federal laws including the Unfair Practices Act, the New Mexico Indigent Hospital and County Health Care Act and the New Mexico Patients Debt Collection Protection Act. He also left the door open for a possible criminal investigation.

"After having a deeper appreciation for the issues identified by Barbara and Debbi Jo, that we will be reaching out to our federal counterparts to engage in a deeper investigation into some of the billing practices that frankly I was unaware of until today," Torrez said.

If allegations are proven to be true, the hospital could face significant financial damages, Torrez said. For example, he said there is a $5,000 civil penalty for each violation of the state's Unfair Practices Act in addition to damages.

"If we add in violations of other regulations, the financial impact would be profound," Torrez said. "If we determine that individuals have engaged in conduct that constitutes or warrants criminal investigation, there is a whole different set of outcomes that could flow from that."

Jason Groves can be reached at 575-541-5459 or jgroves@lcsun-news.com. Follow him on X @jpgroves.

This article originally appeared on Las Cruces Sun-News: New Mexico AG launches investigation into Memorial Medical Center in Las Cruces