Community members gather in Las Cruces for a press conference and rally to celebrate the victory and demand hospitals follow the law

LAS CRUCES—A group of patients, led by Las Cruces mother Ruby Kirker (formerly Ramirez), have won a major victory for New Mexicans by forcing Mountain View Regional Medical Center and its debt collection law firm to change their practices and pay back community members who were unlawfully sued for medical bills they never should have owed. On July 17, Judge Casey Fitch of the Third Judicial District Court issued a verbal ruling from the bench approving the settlement, with the written order forthcoming. The class is represented by the New Mexico Center on Law and Poverty (NMCLP) and Treinen Law Office.

Under the settlement, a total of $399,375 will be paid to the class members, including $625 to each class member, plus class members who already paid the hospital getting a return of their money, capped at $200,000 . The agreement requires Mountain View and its collection firm, Faber & Brand, LLC, to overhaul their billing and collection policies to fully comply with New Mexico’s Patients’ Debt Collection Protection Act. This includes mandatory income screening before pursuing any collection actions, such as lawsuits or wage garnishments.

The Patients’ Debt Collection Protection Act, passed by the New Mexico Legislature in 2021, sponsored by Senators Katy Duhigg and Martin Hickey, protects people with incomes under 200% of the federal poverty level, or $62,400 a year for a family of four, from being sent to collections or sued over medical bills. The law requires hospitals, providers, and debt collectors to check a patient’s income status before taking these actions.

Mountain View sued Ruby and more than 200 other patients without verifying their income, even though they qualified for protection under the law, which has been in effect since July 1, 2021.

People who believe they have been unlawfully sued or sent to collections by a New Mexico hospital or other health care facility since the law was passed are urged to come forward and get help protecting their rights. New Mexicans celebrated the win at a press conference and rally on August 20 in Las Cruces.

“I was sued by Mountain View and sent to collections in 2021, and I was embarrassed and stressed. Then I learned about a law that should have protected my family from this,” said lead plaintiff Ruby Ramirez. “This wasn’t just about me, it was about every family who’s been harassed for money they shouldn’t owe. As the cost of living increases, no one should have to fight off an unlawful medical debt on top of everything else. We stood up for our rights, and we won.”

“We’re here today to celebrate this win and remind our community that these laws exist to protect our families from unfair medical debt. It’s upsetting that the hospital never checked their patients’ income, even though they should have been covered by Medicaid or protected from collections under this law,” said Luz Villescas, Community Leader with Strong Families. “This settlement sets an important precedent: hospitals that violate these protections will not get away with it.”

“This settlement is a step toward healing and fairness for all New Mexicans. Most New Mexicans can’t afford a copay or prescriptions, let alone unfair medical bills on top of high food, gas, and utilities. We hear time and again from rural communities about how medical debt prevents access to care,” said Juliana Hernandez, Field Organizer with Strong Families.  “We want everyone to know that hospitals, providers, and debt collectors must screen income, not send low-income people to collections, and keep patient information private. We’re blessed to live in a state with these protections, and today’s settlement shows they can be enforced.”

“Healthcare is something everyone needs, and families should be able to focus on getting better, not dealing with aggressive debt collection,” said Sovereign Hager, Legal Director with the New Mexico Center on Law and Poverty. “This case makes it clear that hospitals must treat patients with dignity and end harmful practices that add financial hardship to people already facing serious health challenges.”

“This settlement proves that the Patients’ Debt Collection Protection Act is a powerful protection for our neighbors—but only when it’s enforced,” said Senator Duhigg. “We passed this law to protect our communities from predatory practices, and today’s outcome sends a clear message: New Mexico will stand up for our families and hold institutions accountable.” 

“This case comes at a critical moment,” said U.S Representative Gabe Vasquez. “With the administration’s drastic Medicaid cuts, too many New Mexicans will lose access to coverage. Without insurance, families are more likely to face medical debt, and predatory collection practices will only worsen. This settlement sends a strong message that such practices won’t be tolerated.”

“Medical debt wrecks lives. It hurts people’s credit, blocks access to homes, jobs, and cars, and traps families in a cycle of stress and financial hardship, worsening health outcomes,” said Arika Sánchez, Policy Director of the New Mexico Center on Law and Poverty. “Recent federal changes will only make things worse by allowing medical debt back on credit reports. That’s why laws like New Mexico’s Patients’ Debt Collection Protection Act and victories like this settlement are so important.”

“When you go to the hospital, your only worry should be your health, not being dragged to court,” said Hager. “Every hospital in this state should take note: if you break the law and go after patients for debts they do not owe, you will pay the price. The only way forward is to respect patients’ rights and put care above profits.”

NMCLP urges all New Mexico hospitals to review and revise their collections policies to ensure compliance with the Patients’ Debt Collection Protection Act. Institutions that fail to do so will face similar scrutiny and consequences.The settlement agreement can be found here: https://www.lcmcclassactionsettlement.com/
A video of the press conference can be found here: https://drive.google.com/file/d/1rH6Ztl3DcP0OhK3Ecw56ZKoEyN_mm16D/view?usp=sharing