Judge orders pause on Medicaid recoupment from Greenwood Leflore Hospital
A Hinds County Chancery Court judge has ordered the Mississippi Division of Medicaid to pause collecting money owed by Greenwood Leflore Hospital. The order comes after the hospital argued that resuming recoupments could force it to close, according to court documents.
Judge J. Dewayne Thomas’s order requires the state to halt the recoupment process while the case proceeds. The hospital must post a $50,000 cash bond within 30 days for the order to remain in effect.
The dispute centers on how quickly Greenwood Leflore must repay $5.5 million. The debt is linked to a state program meant to support struggling hospitals. The program initially provided a financial boost to the hospital, which has faced financial challenges for years. However, the repayment amount was later recalculated based on updated patient volume data, which lowered the amount owed.
Hospital officials say the recalculation did not account for declining patient numbers after the hospital closed its labor and delivery and intensive care units in 2022. Gary Marchand, a former interim CEO now serving as a consultant, told Mississippi Today that resuming recoupments would threaten the hospital’s financial viability and possibly lead to closure.
The Division of Medicaid notified the hospital in June 2025 of the debt. Despite efforts to secure a bond, Marchand said the hospital has exhausted all reasonable options. The hospital is exploring options to sell, lease, or transfer the facility to a larger health system, including discussions with the University of Mississippi Medical Center.
Legislators have also taken steps to facilitate a transfer. Senate Bill 3230, passed on March 6, allows the hospital to file for bankruptcy and enables another entity to take over. The hospital’s future remains uncertain as negotiations continue amid the ongoing dispute over repayment terms.
Source: Original Article
