Attorney General criticizes Memorial Medical Center and launches investigation • Source New Mexico

Attorney General Raúl Torrez made it clear in a July 16 press conference that he was deeply concerned about the practices of Memorial Medical Center as he announced an investigation into the largest hospital in southern New Mexico.

Torrez – flanked on the left by state officials critical of the hospital and on the right by former patients who had spoken out against MMC – told a crowd of reporters that his office had initially assumed the investigation would be narrow and limited to allegations that MMC had denied service.

But when more former patients and hospital staff emerged from hiding on Tuesday morning, Torrez felt the investigation needed to be expanded.

He said his office was primarily investigating whether the hospital violated consumer protection laws – all civil violations punishable by fines – but said it would share the information with federal authorities and did not rule out the possibility of a criminal investigation.

But regardless, Torrez and other officials said MMC has caused moral harm to Las Cruces and its patients.

“I can’t think of a better way to describe the profound consequences of the alleged misconduct at the hospital,” Torrez said. “And moral injury of this kind only occurs when there is moral failure.”

Overall, Torrez found that MMC denied treatment to people who could not pay, used questionable billing practices and established a culture of fear among its employees. He also warned hospital officials against interfering in the investigation and said retaliation against employees would be dealt with severely.

“Make no mistake, anyone who engages in any form of retaliation against patients or providers who voice their opinions will be held accountable by this office and this agency,” Torrez said.

The hospital responded Tuesday afternoon with the following statement: “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 cooperate fully with this investigation.”

MMC came under increased scrutiny after the publication of an NBC News investigation in June. The article reported that a dozen people were denied treatment by the hospital because they could not pay or had insurance that the hospital did not accept.

The article also mentioned that MMC is a for-profit hospital operated by Lifepoint Health and owned by private equity firm Apollo Global Management. That model, which is more prevalent in New Mexico than any other U.S. state, has come under pressure as cases of putting profits ahead of patients have become more publicized.

Following the NBC News article, MMC CEO John Harris denied the allegation during a Las Cruces city council meeting, saying the article contained “a number of inaccuracies and misinformation.”

“What has been released does not reflect how our hospital cares for patients or the contribution it makes to our community,” Harris told the council on June 11.

One of the key figures in the NBC News story, Barbara Quarrell, spoke to reporters Tuesday about her experience at MMC. When Quarrell, a former MMC nurse and longtime Las Cruces resident, was diagnosed with cancer in 2022, MMC almost immediately refused her treatment when she asked for it.

“I was probably not even a mile down the road when the doctor called me and said, ‘They won’t treat you because they don’t accept your insurance,'” Quarrell said.

Torrez said his office will primarily investigate issues of denial of treatment, and MMC could face fines and damages if Torrez proves these allegations.

“We will be reaching out to our federal colleagues to initiate a more in-depth investigation into some billing practices that, frankly, I was not aware of until today,” Torrez said.

Torrez did not specify what questions his office had about MMC’s billing practices.

Local officials also answered questions about MMC as investigations began at the state and possibly federal level.

Most notably, the hospital – a major economic engine and one of the few places in southern New Mexico where higher quality medical care is available – is bound by a lease agreement with the City of Las Cruces and Doña Ana County that specifies that MMC will provide services to patients in need.

The Bulletin asked local officials whether the allegations constituted a breach of the contract with MMC.

“I believe the lease is several hundred pages long. And I think we’re really committed to looking at it, understanding our role and working with the county to hold MMC accountable to this lease. But that process is ongoing,” said Las Cruces City Councilwoman Becky Corran.

It’s unclear how long the attorney general’s investigation will last, but it marks a new chapter in access to health care in Las Cruces.

“The ultimate goal of an investigation like this, quite frankly, is not necessarily to impose fines, but it’s about what the community wants,” Torrez said. “And what the community needs is a hospital that is focused on patient care.”

Algernon D’Ammassa contributed to this article.