After 50 years in service, the home health hospice provider, Los Alamos Visiting Nurse Service, is closing. In it’s press release, the organization will seize operations on Friday, February 20, 2026.
Agency officials said that rising health care costs and lower insurance payments led to the decision to close. Meggin Lorino, who leads the New Mexico Association for Home and Hospice Care, says the closure is an “alarm bell” for what can happen when home-based care lacks sufficient funding over time.
Financial Challenges facing the agency
Home health reimbursement depends on the payer. Medicare payments are based on the CMS Home Health Prospective Payment System, which sets rates using a federal payment structure.
In rural areas, it can be harder to make ends meet with these payment systems. Searchlight New Mexico reported that urban clinicians can see more patients each day because homes are closer together, while rural providers spend more time driving and see fewer patients.
The agency’s closure letter states the decision was based on financial viability. Leadership decided they could not keep operating under current conditions.
A bigger picture: Aging population and policy questions
This closure comes at a time when more people in New Mexico are reaching retirement age. According to the state health department, the number of residents aged 65 and older is increasing, which means more people are likely to need home care.
Uncertainty about health policy is making things even more complicated. State officials have noted that potential changes to federal Medicaid rules could place additional strain on rural health care. This concern was highlighted in a recent Medicaid reform summary.
What happens to patients and staff?
For continuity of care, Searchlight New Mexico reported that other agencies said they would take on patients. However, transitions can still be hard, especially for those with complex needs.
The agency’s closure letter also says they are working to find options for patients, including talking with another hospice provider. However, the arrangements were not final when the letter was written.
How this affects rural health care?
State officials admit that health care in rural areas costs more and is less reliable due to challenges such as long travel distances and limited resources. In response, the Governor’s office has begun seeking solutions, including launching the Rural Health Care Delivery Fund to help these communities gain better access to care.
Overall, the closure of Los Alamos Visiting Nurse Service provides a real example of the ongoing debate over whether current reimbursement and support systems truly meet the needs of rural care, as described by Searchlight New Mexico.