The New Mexico attorney general, Raúl Torrez, announced on Tuesday the initiation of an investigation into Memorial Medical Center, a Las Cruces hospital operated by Lifepoint Health. The investigation aims to determine whether the hospital violated state laws by turning away indigent and low-income patients seeking care, as highlighted in a recent NBC News report.

During a news conference, Torrez revealed that his office is scrutinizing Memorial's patient policies to ensure compliance with state law and evaluating the hospital's performance under the New Mexico statute governing the provision of care to needy patients. Torrez expressed concern over the alleged prioritization of profit over patients' well-being and safety, stating that decisions seemed driven by maximizing the bottom line rather than providing proper care.

Furthermore, Torrez emphasized that anyone speaking out about the hospital's practices should not face any form of retaliation from the management. This warning came in response to allegations outlined in the NBC News report, where patients claimed they were denied care or had been asked for upfront payments to secure treatment.

One such patient, Barbara Quarrell, a former nurse at Memorial, shared her personal experience of being turned down for care after being diagnosed with cancer in 2022, adding her support to the attorney general's investigation.

In response to the news of the investigation, a hospital spokesperson expressed surprise and assured their commitment to expanding access to care while cooperating fully with the inquiry.

The hospital, operated by Lifepoint Health, is part of the country's largest chain of predominantly rural hospitals, overseeing 62 acute care facilities across 16 states. Lifepoint Health, along with other health care companies owned by private equity, is subject to two U.S. Senate inquiries investigating whether their deals and profits negatively impacted patients and healthcare professionals.

Moreover, Torrez is also examining whether Memorial misrepresented its health care services for needy patients and violated a New Mexico law governing financial assistance programs. The investigation focuses on whether patients were turned away without being properly screened for potential financial assistance options.

Prior to Lifepoint's ownership, Memorial operated as a nonprofit community hospital. However, under the new management, the hospital became a for-profit entity, reportedly charging 6.7 times its cost for care in 2021, which is higher than the average among for-profit hospitals nationwide.

The investigation holds significance for the residents of Doña Ana County, where Memorial Medical Center serves approximately 225,000 people, with nearly 15% lacking health insurance and approximately 23% living in poverty.

Yolanda Diaz, a patient advocate at CARE Las Cruces, expressed her disappointment with the lack of action from county and city officials regarding Memorial's alleged patient denials. Diaz has been notifying officials since 2021 and believes that the investigation launched by the New Mexico Department of Justice is the best course of action for needed change, justice, and public disclosure.

The involvement of private-equity firms, such as Apollo Global Management, in the healthcare industry has increased over recent years. These firms often load debt onto the acquired companies, cut costs to boost earnings, and appeal to potential buyers. In New Mexico, around a quarter of hospitals are controlled by private-equity firms, leading to concerns about increased costs for patients and lower quality of care.

The investigation by the attorney general and the subsequent findings will shed light on the alleged violations and potentially drive necessary changes to ensure that patient care remains a top priority for Memorial Medical Center and similar healthcare facilities.