Attorney General Raúl Torrez made clear in a news conference July 16 that he was deeply concerned about Memorial Medical Center's practices as he announced an investigation into southern New Mexico’s largest hospital.
Torrez – flanked on the left by public officials critical of the hospital and to the right by former patients who’d spoken out against MMC – told a gaggle of reporters that his office initially believed the investigation would be narrow in scope and limited to claims that MMC denied service.
But just Tuesday morning, as more former patients and hospital staff emerged from the woodwork, Torrez deemed the investigation needed to expand.
He said that his office was primarily investigating whether the hospital had violated any consumer protection laws—all civil violations with monetary penalties—but said he’d be sharing information with federal authorities and refused to rule out the possibility of a criminal investigation.
But regardless, Torrez and other officials said MMC had morally injured Las Cruces and its patients.
“I can't think of a better way of describing the profound implications of the alleged misconduct that is taking place at the hospital,” Torrez said. “And moral injury of that type only occurs when there's been a moral failure.”
Overall, Torrez noted claims that MMC refused service to people who couldn’t pay, had questionable billing practices and instituted a culture of fear among its employees. He also warned hospital officials not to interfere with the investigation and said that retaliation against employees would be dealt with severely.
“Make no mistake, anyone engaged in any form of retaliation against patients who speak out or providers who speak out will be dealt with 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 be cooperating fully with this investigation.”
MMC fell under increased scrutiny following the publication of an NBC News investigation in June. The article noted a dozen people who said the hospital denied them treatment because they couldn’t pay or had insurance the hospital refused to accept.
The article also noted that MMC is a for-profit hospital operated by Lifepoint Health and owned by private equity firm Apollo Global Management. That model, of which New Mexico has a greater proportion than any other state in the U.S., has come under pressure as instances of prioritizing profit over patients became more publicized.
Following the NBC News article, MMC’s CEO John Harris denied this allegation during a Las Cruces City Council meeting. He said the story contained “a number of inaccuracies and misinformation.”
“What has been published is not reflective of how our hospital cares for patients or how it contributes 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 on Tuesday about her experience at MMC. When Quarrell, a former MMC nurse and longtime Las Cruces resident, was diagnosed with cancer in 2022, she said MMC rejected her from treatment almost as soon as she asked for it.
“I wasn't probably even half a mile down the road when the doctor called me and said, 'They're not going to treat you because they don't take your insurance,'” Quarrell said.
Torrez said his office would first and foremost investigate questions about denial of care. MMC could face monetary fines and damages if Torrez proves those allegations.
“We will be reaching out to our federal counterparts to engage in a deeper investigation regarding some of the billing practices that, frankly, I was unaware of until today,” Torrez said.
Torrez did not specify what questions his office had about MMC's billing practices.
Local officials also responded to questions about MMC as the state and potential federal investigation get underway.
Notably, the hospital – a significant economic driver and one of only a few places to receive higher levels of medical treatment in southern New Mexico – is bound to a lease agreement with the city of Las Cruces and Doña Ana County. That lease agreement stipulates that MMC will provide services to indigent patients.
The Bulletin asked the local officials whether the allegations would constitute violations of MMC’s contract.
“I think the lease is several hundred pages. And I think that we're really committed to poring over that, understanding what role we have and working with the county to hold MMC accountable to that lease. But that process is ongoing,” said Las Cruces City Councilor Becky Corran.
It’s unclear how long the AG’s investigation will last, but it marks a new chapter in healthcare access in Las Cruces.
“The ultimate objective of an investigation like this, quite frankly, is not to secure necessarily financial penalties, but it’s about what the community wants,” Torrez said. “And what the community needs is a hospital centered on patient care.”
Algernon D'Ammassa contributed reporting to this article.
