WASHINGTON — On Tuesday, New Mexico Attorney General Raúl Torrez announced a formal investigation into Memorial Medical Center, a Las Cruces hospital managed by Lifepoint Health, to assess whether the facility has contravened state regulations by refusing care to indigent and low-income patients. This investigation follows a recent NBC News report that has raised concerns about the hospital's adherence to state laws and its financial and patient care practices.

Attorney General Torrez revealed that his office is examining Memorial’s patient care policies to ensure compliance with New Mexico’s legal requirements for providing medical services to underprivileged individuals. In his announcement, Torrez outlined the troubling findings from recent meetings with patients and healthcare providers at Memorial, indicating that the hospital’s management may have prioritized financial gains over patient care.

“It is apparent to me that the management of this facility has failed to place the well-being, safety, and care of their patients in the proper place and in the proper priority,” Torrez stated. “It is clear that decisions have been made from a standpoint seemingly motivated by profit, focused on maximizing the bottom line, and lacking due respect and consideration for patients under their care.” Torrez also issued a warning to the hospital’s management, urging them not to retaliate against those who speak out about the hospital’s practices.

The investigation is prompted by allegations detailed in an NBC News report published last month. The report claims that under Lifepoint Health’s management, Memorial Medical Center has been refusing care to cancer patients and demanding upfront payments from those seeking treatment. Lifepoint Health, which was recently acquired by Apollo Global Management—a prominent private-equity firm based in New York—has faced criticism over these practices. The NBC News report includes physician records and interviews with 13 patients who described being denied care or faced financial demands.

Barbara Quarrell, a former nurse at Memorial who was denied care after a cancer diagnosis in 2022, spoke at the press conference, expressing support for the Attorney General’s investigation. “It’s about time,” Quarrell said. “At Memorial, it’s all about the money; it’s no longer about the patients. Why are they even in health care if it’s not about patients?”

In response to the Attorney General's announcement, a spokeswoman for Memorial Medical Center stated, “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.”

Prior to the NBC News report, Memorial had denied the allegations of denying care and had issued apologies to two patients who reported being turned away. An Apollo spokeswoman has yet to respond to requests for comment regarding the ongoing investigation.

Lifepoint Health operates the largest network of primarily rural hospitals in the United States, managing 62 acute care facilities across 16 states. The company is currently under scrutiny from two U.S. Senate inquiries, which are examining whether the financial benefits of private-equity ownership come at the expense of patient care and working conditions for clinicians. Apollo has stated its intention to cooperate with these investigations.

Although Memorial Medical Center is managed by Lifepoint Health, the facility and the land on which it sits are owned by the city of Las Cruces and Doña Ana County. The 2004 lease agreement between Memorial and the city/county mandates that the hospital continue to provide care to individuals unable to pay for services. Allegations of care denials may breach this 40-year lease agreement.

Doña Ana County, served by Memorial, has a population of approximately 225,000. Census data indicates that around 15% of residents lack health insurance and approximately 23% live in poverty, figures significantly above national averages.

One key aspect of the state investigation is whether Memorial has misrepresented its commitment to providing care to needy patients. The hospital’s latest annual community report asserts: “Delivering care to all of our neighbors, regardless of their ability to pay, is foundational to our mission and our commitment to our community.” However, concerns have been raised that the hospital may have failed to adhere to New Mexico's financial assistance regulations. The Patients Debt Collection Protection Act requires hospitals to screen patients for financial assistance, and a failure to do so could constitute a legal violation.

Memorial, which operated as a nonprofit community hospital before 2004, is now a for-profit entity under Lifepoint Health. Recent data shows that Memorial charged 6.7 times its costs for care in 2021, significantly higher than the nationwide average of less than five times for for-profit hospitals. Medicare data also indicates that Memorial’s costs per beneficiary are above both national and state averages.

Yolanda Diaz, a patient advocate and founder of CARE Las Cruces—a nonprofit organization that assists patients with healthcare costs—has been alerting local officials about Memorial’s alleged practices since 2021. Diaz expressed hope that the Attorney General’s investigation will lead to necessary reforms and justice, stating, “I was disappointed that no one in Las Cruces and Doña Ana County leadership stepped forward to take needed action, but I had hope.”

Records obtained through open records requests reveal that Memorial’s policy on indigent care, which previously mandated providing care to patients unable to pay full costs, was altered last year—five years after Apollo’s acquisition of Lifepoint. Private-equity firms like Apollo are known for acquiring healthcare facilities and burdening them with debt while cutting costs to boost profitability. According to the Private Equity Stakeholder Project, nearly one-quarter of New Mexico’s hospitals are now under private-equity control. Research suggests that private-equity involvement in healthcare often results in increased patient costs and reduced care quality, including higher mortality rates in nursing homes and more frequent incidents of infections and falls in hospitals.