New Mexico AG Explores Legal Path to Recover Medicaid Costs from Sterigenics

New Mexico's AG is seeking to hold Sterigenics accountable for its environmental impact. The case could set a precedent for companies to cover related healthcare costs.

, and Administrator

2025 October 23 . 8:03 AM

1 min read

In the image we can see there are two people wearing clothes and face mask. There is even a dog... — In the image we can see there are two people wearing clothes and face mask. There is even a dog lying on the bed. This is an injection, small glass bottle and a stethoscope. There is even a sheet of paper and these are the pipes.

New Mexico AG Explores Legal Path to Recover Medicaid Costs from Sterigenics

New Mexico Attorney General Raúl Torrez is exploring legal avenues to recoup increased Medicaid costs linked to a prolonged court case involving Sterigenics' plant in Santa Teresa. The plant is accused of excessive emissions of ethylene oxide, a carcinogenic gas used for medical sterilization.

The lawsuit, initiated by Torrez's predecessor Hector Balderas in 2020, claims that Sterigenics' Santa Teresa facility emitted excessive amounts of ethylene oxide. Torrez, who took office in January 2021, has been examining potential recovery of Medicaid costs that have risen due to this case.

Torrez's involvement in Medicaid cost recovery cases is not new. During his tenure, he addressed cost increases related to a prolonged court case involving a medical sterilization facility in Santa Teresa. While the exact timeline of these actions is unclear, his office reported a Medicaid fraud case involving a substance abuse recovery program around 2017.

The state court will now decide whether Torrez can recover the increased Medicaid costs from Sterigenics. If successful, it could set a precedent for holding companies accountable for their environmental impact and the resulting healthcare costs.