A state-of-the-art medical facility in Santa Fe that opened just 14 months ago shut down abruptly on November 25, 2025, after a critical investment deal fell through. The closure of Nexus Health, which had cost $116 million to build, left thousands of patients without care, displaced approximately 175 employees, and exposed vulnerabilities in New Mexico’s healthcare infrastructure at a moment when the region can least afford it.
The facility’s rapid demise began when Rubicon Founders, a Nashville-based healthcare investment firm, declined to finalize a partnership with Nexus Health. According to Dr. Scott Herbert, Nexus Health’s president, Rubicon cited concerns that the New Mexico market was too small to generate adequate returns on investment. Nexus Health and McKesson, the company that funded the facility, had previously agreed that if a deal with Rubicon was not completed by November 25, both parties would begin shutting down operations. That deadline passed without resolution, triggering an immediate wind-down.
Patient Care Disruptions and Community Impact
Within hours, surgeries were canceled and emergency calls flooded the region. Over 400 additional patients sought care at Christus St. Vincent Regional Medical Center, the area’s largest hospital, straining an already stretched system. Cancer patients faced the most severe disruption, with chemotherapy treatments, radiation sessions, and critical surgeries abruptly halted. For those in active treatment, delays could prove life-threatening.
The timing of the closure compounded the crisis. Approximately 175 employees faced layoffs just before the holidays, with many having relocated to Santa Fe specifically for positions at Nexus Health. Severance packages and benefits information remained undisclosed, leaving workers in financial and emotional limbo. The closure also jeopardized a planned mixed-use development in the Los Soleras area that would have included 330 apartment units, retail spaces, and restaurants, with one-third of the units designated as affordable housing to address the region’s severe housing shortage.
Internal Conflicts and Industry Pressures
Long-standing tensions between Nexus Health and Christus St. Vincent contributed significantly to the clinic’s vulnerability. In 2024, Christus St. Vincent revoked hospital privileges for two orthopedic surgeons and three pain management specialists affiliated with Nexus. An infectious disease specialist aligned with Nexus was denied privileges in June. These disputes undermined Nexus’s operational credibility and likely influenced Rubicon’s decision to withdraw.
The collapse highlights a broader pattern in New Mexico’s healthcare system. Private equity firms control 36 percent of the state’s hospitals, creating an environment where financial calculations can override patient care considerations. When investment returns appear insufficient, these firms can rapidly reassess and withdraw, leaving communities vulnerable.
Broader Healthcare Consequences for New Mexico
The closure exacerbates existing healthcare access problems in Northern New Mexico. Nearby facilities like Alta Vista Hospital have already closed critical units, eliminating services such as maternity care and intensive care. Nexus Health had established a partnership with the Sarah Cannon Research Institute to provide local cancer patients access to cutting-edge clinical trials. With the clinic gone, patients now face the difficult choice of traveling to larger cities or out-of-state facilities for potentially life-saving treatments.
The physician brain drain accelerates as specialists recruited for Nexus Health relocate or seek positions elsewhere, deepening the regional healthcare worker shortage. McKesson’s exact role in the closure process remains unclear, with the company characterizing Nexus Health as independently owned while participating in the mutual agreement to shut down operations.
Legislative Gaps and Calls for Reform
Recent legislative efforts in New Mexico, including the Health Care Consolidation Oversight Act, arrived too late to prevent this collapse. Nexus Health opened just before these protective regulations were strengthened, exposing gaps in oversight mechanisms. The facility’s closure serves as a stark reminder that without more proactive safeguards, private equity-driven healthcare ventures will continue to pose risks to vulnerable markets and the patients who depend on them.
Sources
Santa Fe New Mexican Investigative Reporting (November 26 – December 1, 2025)
Georgetown Center for Health Insurance Reforms Legislative Analysis (September 9, 2025)
Progress Now New Mexico and Private Equity Stakeholder Project Analysis (July-August 2025)