Anything half-way serious that goes to Santa Fe IHS, pretty quickly gets sent over to St. Vincent. For practical, serious medicine purposes, St. Vincent is largely thought of as the 'only hospital' in town. Cath lab, complicated ortho, complicated medicine, trauma, and the like all goes to St. Vincent or maybe even down to Albuquerque.
Your impression about cost of living is correct; Santa Fe is pretty pricey.
The upside is that it is a very nice town. Not really all that large (under 100,000), with great mountains hanging right over the town. In no time at all you can be up at the ski area, or hiking in the mountains. If you need the amenities of a larger city, Albuquerque is only an hour away.