The Memorial Medical Center (MMC) denied wrongdoing, saying it has acted “in good faith” to address concerns after the city and county officials moved forward with a lawsuit over the hospital’s operations.
MMC, in a statement released Monday, said it was “surprised and disappointed” by the lawsuit, filed in New Mexico’s 3rd Judicial District. The hospital insisted it has been in close coordination with local governments.
“We strongly believe that we are not in breach of our agreements, and we have been committed to forging a collaborative path aimed at the common goal of ensuring our community has access to the care they need,” the hospital said.
Lawsuit cites care gaps, transparency issues
The lawsuit names MMC, its operator Lifepoint Health, and its owner Apollo Global Management as defendants. MMC operates on public property under a lease and asset purchase agreement with the city and Doña Ana County.
Local officials accused the hospital of failing to meet obligations to provide care for indigent and low-income patients. They further alleged that the hospital failed to invest in facility upgrades based on a share of its revenue.
The case stems from a 2024 notice of breach issued by the city and Doña Ana County, which outlined seven demands, according to the complaint cited by the Albuquerque Journal.
Despite some progress and discussion, MMC, according to Mayor Eric Enriquez, “failed to fulfill the obligations that were agreed upon.” For his part, City Manager Ikani Taumoepeau said complaints from residents about barriers to accessing care persist.
Hospital says talks were ongoing
The hospital, however, clarified it had been attempting to engage with officials to resolve the issues. “We have attempted to discuss the City and County’s latest requests for weeks — even as recently as last week — and continue to be rebuffed,” the hospital said.
MMC describes the lawsuit as a breakdown in ongoing negotiations, rather than a refusal to comply.
Dispute over patient care and finances
The legal dispute follows a 2024 report by NBC News of patients who claimed the hospital denied care, including those with serious illnesses. The report alleged that MMC also required patients to pay up front, particularly those without insurance.
At the time, hospital CEO John Harris denied the allegations. But he retired abruptly soon after. Dennis Knox succeeded him.
Officials also question whether the hospital complied with the mandatory allocation of 4 percent to 5 percent of its net revenue toward capital improvements. They claim the hospital provided limited financial information from 2021 to 2023. The refusal to provide information complicates efforts to verify compliance. MMC, they said, declined the proposed third-party audit, which the government offered to fund.
Case could drag on, but settlement possible
City Attorney Brad Douglas said possible outcomes could include reclaiming the public property. He emphasized, however, that this is not the preferred outcome, as the lawsuit seeks a declaration that MMC’s owners and operators breached their contracts. It also seeks court orders to enforce compliance and award damages.
But both sides signify their openness to resolve the case amicably. The hospital’s owner and operator maintain they are committed to working with local leaders.
“This could be over tomorrow,” Douglas said. That is “if Lifepoint and MMC come to the table with a resolution… that ensures that our residents get the care that they deserve.”