I started drafting this column to urge our city and county finally to file suit against Apollo Global, which ultimately owns Memorial Medical Center. Monday, they filed that suit.
In my youth, Memorial General Hospital was a Hill-Burton Act hospital owned by the city and county. It is now owned and operated by Apollo, the nation’s largest private-equity owner of hospitals, which, according to a U.S. Senate subcommittee’s investigative report, is guilty of “decreased…quality of care,” “chronic under-staffing,” “health and safety violations,” unfulfilled promises to communities, including breached promises regarding capital investment, and hospital closures. Private equity has consistently prioritized profits over patient care, as MMC has.
Often, private equity overloads hospitals with debt, squeezes quality-control and services as bone-dry as possible, and fires anyone who speaks up. The horrible abuse of indigent cancer patients documented by Yolanda Diaz is one foul-smelling tip of the iceberg.
Usually, we’d be merde out-of-luck. However, the local governments leased the premises, rather than selling outright. That lease requires maintenance of key services, a certain level of capital investment, and regular reports. The tenant has breached. Two years ago, many of us urged City and County to file suit. In August 2024. the City served MMC with a formal “Notice of Material Breach.” To my knowledge, MMC has not come into compliance with material lease provisions. MMC says it complies. City/County oversight has been lax.
NMSU Professor Ivan de la Rosa says, better and more concisely, what some of us said more than two years ago about MMC/Apollo. Private equity owning MMC is harming our community.
Our doctor shortage has been a major issue of public concern. Apollo’s shenanigans endanger us. Apollo has canned good doctors who raised questions. It might ultimately let MMC go belly-up as sister hospitals have. Prioritizing short-term profits and reducing clinical staff may well undermine accreditation of MMC as a teaching hospital. That would significantly curtail our ability to replenish our doctor supply. Continued accreditation depends on the very qualities that Apollo’s current mismanagement threatens.
It was obvious by 2024 that City and County should sue for breach of contract.
Some thoughts. First, I’m glad the County has joined the City as a plaintiff. I never doubted the City would sue. I doubted the County. I urge both plaintiffs to hang tough. One possible result of suit would be for us to recover the premises from the breaching tenant. We should request that. It would be fair; and staying in bed with Apollo will mean more of Apollo’s usual conduct, including perhaps another lawsuit becoming necessary down the road.
At the same time, we all should understand and respect these local governments. Apollo has all the money in the world to pay a barnful of lawyers to string this out, upping costs and hoping to generate public pressure to settle. City and county know this too. They are going ahead. That’s to their credit.
The breach-of-contract lawsuit, by court order or settlement, should maximize the chance that MMC will better serve patients longer. We might even prevent Apollo from killing it off. Toward that end, I agree with the report that we will need a special joint “Lease Oversight Committee” as a watchdog, require that continued operation by Apollo/Lifepoint maximize local control, and study the feasibility of returning MMC to a non-profit or public hospital authority that benefits the public. We definitely should not fear that possible result.
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[The above column didn’t appear in the Sunday, 29 March 2026 isssue of the Las Cruces Sun-News, but may yet appear during the week, and will presently appear on the newspaper’s website and on KRWG’s website (under Local Viewpoints). A shortened and sharpened radio commentary version of this Sunday column will air during the week on KRWG (90.1 FM) and on KTAL-LP (101.5 FM / http://www.lccommunityradio.org/). ]
[We’ve reached out to the NMSU author of that new report. And we’’ try to arrange a discussion between the parties on radio, but that’s pretty unlikely with the litigation pending. ]