Bankruptcy, Layoffs Put Greenwood Leflore Hospital’s Future in Doubt
Greenwood Leflore Hospital has filed for bankruptcy, laid off staff and closed clinics as it seeks a possible partnership with the University of Mississippi Medical Center, hospital officials said, leaving the rural facility’s future uncertain.
The 25-bed hospital, owned by the city of Greenwood and Leflore County, announced the moves in recent weeks as it tries to stabilize operations amid mounting debt, officials said in an April 14 statement reported by Mississippi Today. The statement said bankruptcy “will serve as a tool to stabilize operations by restructuring debt and addressing unprofitable contracts, with the goal of continuing to serve the community.”
The hospital has faced financial strain since the start of the COVID-19 pandemic and has reduced services over time, officials and local leaders told Mississippi Today. The hospital’s instability intensified over the past year after a dispute with the Mississippi Division of Medicaid over debts, officials said. If Greenwood Leflore closes, patients would have to travel more than 30 miles to UMMC Grenada, Mississippi Today reported.
Residents and former employees described immediate impacts. Curessia Brown told Mississippi Today that proximity to the hospital saved her life when she suffered heart failure while eight months pregnant. Lora Evans, the hospital’s former director of admissions, was among 86 staff members laid off on April 8 and said she would accept the loss of her job if it meant preserving care for the community, Mississippi Today reported. Outpatient and cardiac rehabilitation centers are to treat their final patients Friday, and after-hours and wellness services closed April 8, the report said.
The hospital’s troubles have become a campaign issue in the U.S. Senate race. Democratic challenger Scott Colom blamed recent federal legislation for worsening rural hospital finances in remarks near the hospital, while campaign manager Jake Monssen said Republican Sen. Cindy Hyde-Smith has prioritized rural health and cited federal programs that aim to offset rural hospitals’ losses, Mississippi Today reported. Officials and community members also noted prior discussions between Greenwood Leflore and UMMC, including a letter of intent signed in February to explore a transaction in which the hospital would transfer land, facilities, assets and operations to the academic center, Mississippi Today reported.
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