Quorum Health Resources dropped from state lawsuit

Proceedings delayed in Alta Vista Regional Hospital case

New Mexico Attorney General Raúl Torrez amended the state’s complaint against Alta Vista Regional Hospital in Las Vegas earlier this month, clarifying that Quorum Health Resources, which performs a consulting role in the management of Taos’ Holy Cross Medical Center, is not a defendant in the lawsuit.

The original complaint, brought under the state’s Unfair Practices Act, was filed on Dec. 8 in New Mexico’s 4th Judicial District by Torrez’s predecessor, Hector Balderas, who named Quorum Health Resources as owners of the Las Vegas hospital. The Feb. 10 amended complaint instead names “Quorum Health Corporation, AKA Quorum Health” as defendant along with San Miguel Hospital Corporation, Alta Vista Regional Hospital — which is owned by Quorum Health Corporation — and 20 “John Doe corporations and limited liability corporations.”

A spokesperson for Holy Cross Medical Center said the confusion likely stemmed from the fact that “Quorum Health Resources was originally a division of Quorum Health, but was sold to Grant Avenue Capital, LLC in May of 2021.”

Quorum Health declared bankruptcy in 2017, from which it emerged in 2020.

“Quorum Health (often referred to as QHC or QHCCS) owns and manages the Alta Vista Regional Hospital in Las Vegas,” the Holy Cross spokesperson said. “It is not the same organization Holy Cross uses for group purchasing and shared services. Holy Cross Medical Center utilizes the services of Quorum Health Resources (QHR). They are different companies that offer different services. Holy Cross Medical Center is not managed by or affiliated with Quorum Health Corporation AKA Quorum Health AKA QHCCS, LLC.

“Quorum Health owns and manages hospitals, but Holy

Cross is not one of them. You will not see Holy Cross Hospital on their list of locations,” the spokesperson added.

After Quorum Health Resources was sold to the private equity firm, the company continued to operate out of its suite next to Quorum Health Corporation’s headquarters in the same building in Brentwood, Tenn. Brentwood is on the outskirts of Nashville, where a great many of the country’s largest healthcare industry companies are headquartered.

“QHR Health will continue to operate from its corporate headquarters in Brentwood, Tenn.,” Quorum Health Corporation said in a June 2021 press release announcing the restructuring. “The company will also continue to provide Quorum Health with supply chain support and select consulting services.”

Lauren Rodriguez, communications director for the Office of the Attorney General, said that that when the initial complaint was filed, “investigation led us to understand that the initial company listed was the correct organization to name in the complaint.”

“Since then,” Rodriguez added, “additional investigation, gained in part from conversations with the corporations, led us to understand that the more correct entity to include in the lawsuit is Quorum Health Corporation, which has a complicated corporate structure through which it conducts business in New Mexico.”

The corporate name confusion has delayed court proceedings in the case.

According to the most recent documents filed in the case, a motion to reschedule a scheduling conference, the state prosecution is now “in the process of serving defendant Quorum Health Corporation, LLC as they are newly named in this suit and do not have notice of the scheduling conference set for this week.”

The suit seeks a preliminary and permanent injunction barring Alta Vista from engaging in advertising for services it does not provide and against Alta Vista engaging in unconscionable billing practices. The suit further seeks civil penalties, restitution and other fees and costs.

The case is assigned to 4th Judicial District Judge Abigail Aragon, who ordered a hearing set for March 23.