New Mexico attorney general launches investigation into patient care at private equity-run hospitals | Real Time Headlines

New Mexico’s attorney general announced an investigation Tuesday into Memorial Medical Center in Las Cruces, operated by Lifepoint Health, to determine whether the facility Recent NBC News ReportsBy denying poor and low-income patients seeking care, it violates state law.

Attorney General, Raul Torressaid his office is reviewing whether Memorial’s patient policies comply with state law and the hospital’s performance under New Mexico regulations regarding care provided to indigent patients.

At a news conference Tuesday announcing the investigation, Torrez said he had just met with patients and providers at Memorial Hospital to discuss their concerns.

“It is clear to me that the management of this facility has failed to put the welfare, safety and care of patients in the proper place and place the appropriate priority,” he said. “It is clear to me that these decisions were “Made from a seemingly profit-driven, bottom-line maximizing perspective, without due respect and due consideration for the patients in their care.” He also warned hospital management against anyone who spoke publicly about their practices. Take revenge.

An NBC News report last month cited allegations that Memorial Medical Center was turning away cancer patients under its operator, Lifepoint Health, which has been taken over by New York-based private equity firm Apollo Global Management. Apollo Global Management) acquisition. Physician records and interviews with 13 patients detail instances in which hospitals withheld care or demanded upfront payment to secure treatment.

One patient, former Memorial Hospital nurse Barbara Quarrell, said the hospital denied her treatment after she was diagnosed with cancer in 2022. own story.

Quarrell told NBC News she was encouraged by the attorney general’s investigation. “It’s time,” she said. “At Memorial Hospital, it’s all about the money; it’s not about the patients anymore. If it’s not about the patients, why are they still working in health care?”

“Memorial Medical Center was surprised to learn of this investigation by Attorney General Torres during today’s press conference,” a spokesperson for the hospital said in a statement. “We remain committed to expanding access to care and being a great addition to Las Cruces and A great community partner in Las Cruces.

Before the report was released and aired in June, Memorial Hospital told NBC News it was not denying care, but two of its top officials called to apologize to two patients who told NBC News they had been denied care.

An Apollo spokesman did not respond to an email seeking comment.

Lifepoint Health is the operator of Memorial and oversees healthcare in the country largest chain store mostly rural hospital — There are 62 emergency care facilities in 16 states. Lifepoint is two themes U.S. Senate investigationand other healthcare companies owned by private equity, NBC News Report. The investigation seeks to assess how much profit Apollo and other companies made on these deals and whether they harmed patients and clinicians. Apollo said it was cooperating with the investigation.

Although Lifepoint operates the memorial, the facility and the land it sits on are owned by the city of Las Cruces and Doña Ana County. Denying care to patients could violate Memorial Hospital’s 40-year lease signed in 2004 with the county and city.

Approximately 225,000 people live in Doña Ana County, an urban and rural area served by the memorial, and nearly 15 percent of the population does not have health insurance. Recent census data shows. Approximately 23% of county residents live in poverty; 11.5% nationwide.

Torrez said one focus of the state investigation is whether Memorial Hospital misrepresented the health care services it provided to indigent patients. “Providing care to all of our neighbors, regardless of their ability to pay, is fundamental to our mission and commitment to the community,” the hospital’s most recent annual report to the community said.

Torrez is also investigating whether Memorial Hospital violated New Mexico law regarding patient financial assistance programs. The Patient Debt Collection Protection Act requires hospitals to screen for financial assistance, he said, adding that “it would be a violation to turn away patients without screening.” Some patients interviewed by NBC News for a June report said, They were denied treatment without being screened to determine if they could use financial assistance.

Prior to 2004, Memorial Hospital was a community-based, not-for-profit hospital. Led by Lifepoint, Memorial is a for-profit entity with significant profits. In 2021, the company charged 6.7 times more for care, according to the latest data provided by the Centers for Medicare and Medicaid Services (CMS). The average charge at for-profit hospitals nationwide is less than five times the cost, said Ge Bai, a professor of health policy and management at the Johns Hopkins Bloomberg School of Public Health in Washington, D.C.

this CMS hospital comparison website Memorial’s health insurance costs per beneficiary are proven to be higher than the national average and nearly 20 percent higher than the state average.

Yolanda Diaz is a patient advocate at CARE Las Cruces, a nonprofit she founded to help patients in need pay for health care and expenses. Diaz has been notifying county and city officials since 2021 that Memorial Hospital is turning away patients, a practice she said she believes is inhumane and unjust.

“I am disappointed that no one from the leadership of Las Cruces and Doña Ana County has stepped up to take the necessary action, but I remain hopeful,” Diaz said in an email. “I believe “Initiating a formal investigation by the New Mexico Department of Justice is absolutely the best course of action and I hope the public will be informed of the need for change and justice.”

Memorial Hospital’s written indigent care policy over the years directed it to provide care to patients who could not afford the full cost of treatment and discussed offering discounts or cost-sharing arrangements for those who met income criteria, according to hospital documents produced through a public records request. Something changed last year, five years Records show Apollo, the private equity giant co-founded by Leon Black, acquired Lifepoint.

Private equity firms like Apollo have taken over much of the healthcare industry in recent years. These companies typically take on debt from the companies they acquire and then cut costs to increase earnings and subsequently attract potential buyers. Nearly a quarter of New Mexico hospitals are controlled by private equity firms, according to one agency Research on private equity stakeholder projectsa nonprofit organization that analyzes the impact of the private equity industry on consumers.

Private equity lobbying group the American Investment Council said the industry improve healthcare. but independent Academic Research Private equity firms’ involvement in the industry has been shown to result in significant cost increases for patients and payers (e.g., Medicare). Research shows lower quality of health care linked to corporate investment in health care, including 10% higher mortality rate nursing home Owned by private equity firms More events Infections, blood clots and falls in hospitals.