A Hinds County Chancery Court judge ordered the Mississippi Division of Medicaid to release approximately $2.4 million to Greenwood Leflore Hospital on Monday. The agency had indicated plans to withhold the funds, which the hospital argued could force its closure this week, jeopardizing a proposed transfer to the University of Mississippi Medical Center.
Judge Dewayne Thomas directed Medicaid to make the June payment by Tuesday, marking the second time he has intervened in the hospital’s financial disputes. In March, he ordered Medicaid to halt recoupments of overpayments made through the Mississippi Hospital Access Program, which supports hospitals with low Medicaid reimbursements, after the hospital filed for bankruptcy.
According to Gary Marchand, a consultant advising the hospital’s board, the payment will allow Greenwood Leflore to remain open until July 31. The hospital’s officials have stressed that maintaining operations until then is essential for completing its transfer to UMMC, the state’s only academic medical center. UMMC officials have said the transfer is vital for continuing healthcare services in Leflore County and surrounding areas.
Greenwood Leflore Hospital, owned by the city of Greenwood and Leflore County, has faced financial difficulties since the COVID-19 pandemic, including layoffs, clinic closures, and bankruptcy filings. The hospital filed a plan to donate its assets to UMMC, which would not assume liability for debts not covered by the agreement. The transfer is expected to be finalized by Aug. 1, pending court approval.
This ruling follows a yearlong dispute over Medicaid’s efforts to recover more than $5.5 million in supplemental payments made since 2024. Medicaid contended that declining patient volumes, especially after the hospital shut labor and delivery and intensive care units in 2022, justified recalculations that reduced funding. The agency argued it had the right to withhold the June payment due to outstanding debts, estimated at around $10 million.
Medicaid initially provided the payments as a financial boost but later recalculated them based on updated patient data. The hospital challenged the withholding, arguing the court order should prevent Medicaid from withholding funds for 2025 payments. The case was returned to chancery court on June 23. Judge Thomas’s order did not specify restrictions on how the funds should be used, and he denied the hospital’s request for attorney fees related to the motion.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
