City of Las Cruces sends Memorial Medical Center Notice of Breach

At a news conference Friday morning, Las Cruces City Manager Ikani Taumoepeau addressed a Notice of Material Breach that was delivered to Memorial Medical Center and LifePoint Health on Thursday, August 30, 2024. Taumoepeau expressed that the City would hold itself and its partners accountable to their commitments.

Other speakers at the news conference included City Attorney Brad Douglas, Mayor Pro Tem Johana Bencomo, and City Councilor Becky Corran.

Both City and County leaders agree that they would like to see Memorial Medical Center meet its obligations and continue to serve vulnerable populations in the community. Both City and County administrators want to be involved in holding responsible parties accountable.

The City’s legal team alleges Memorial Medical Center violated the lease agreement which calls for them to provide expanded health care services to those unable to pay the full cost of healthcare services rendered to them. The agreement also calls for the hospital to prepare a monthly cost report for lessors and the operating board of the costs of expanded care during the previous month served along with number of patients served.

The City is demanding that Memorial Medical Center:

• Provide all documents related to requests made for expanded care between years 2018 and 2024.
• Provide all documents relating to Memorial Medical Center’s denial of requests for expanded care services in the same timeframe.
• Provide all documents relating to annual capital expenditures in connection with the operation of the hospital.
• Provide all reports setting forth the costs of expanded care services provided between 2018 and 2024.
• Develop an annual report describing the fulfillment of the lessee’s obligations under the lease by September 30, 2024.
• Provide all annual reports describing the fulfillment of the lessee’s obligation under the lease developed for the years 2018 through 2024.
• Provide a detailed outline of its plan to remedy the defaults identified regarding the denial to provide expanded care services within 30 days or an explanation why it cannot within 30 days.

Friday’s news conference can be viewed at clctv.com and on the City’s YouTube Channel.
Documents related to this news conference can be found in the Trending Topics section of the Public Records portal on the City’s Website.