Greenwood Leflore Hospital has signed a letter of intent to discuss a possible transfer of its operations to the University of Mississippi Medical Center, according to officials and a document obtained by Mississippi Today. The public hospital in Greenwood has faced ongoing financial difficulties, warning as recently as December that it was near closure due to debt owed to the Mississippi Division of Medicaid.
In a Friday court filing, Gary Marchand, the hospital’s former interim CEO and current consultant for its board, stated that the hospital’s financial situation has not improved since December. Marchand warned that if Medicaid begins collecting the debt this month, the hospital could be forced to close.
The hospital is exploring options including leasing, selling, or transferring to a larger healthcare system to ensure continued services, Marchand said. Legislation passed this week allows the hospital to file for bankruptcy, a move seen as necessary for any potential takeover, according to state Sen. Rita Parks.
The Feb. 11 letter of intent, on UMMC stationery, outlines the terms for discussions. It proposes that Greenwood Leflore Hospital would donate land, facilities, assets, and operations—including clinics and physician practices—to UMMC or its affiliate. The agreement would grant UMMC full control of the hospital.
Representatives for the city of Greenwood and Leflore County, which jointly own the hospital, signed the document between Feb. 17 and Feb. 23. The letter emphasizes that this arrangement aims to maintain financially viable healthcare services for the community, but it does not commit to any deal. Leflore County Supervisor Anjuan Brown expressed openness to any arrangement that ensures medical care remains available locally.
State Sen. Hob Bryan, a Democrat, said discussions with UMMC have been ongoing and that keeping the hospital operational is of statewide interest. He noted that recent efforts, including a failed partnership in 2022, sought to stabilize the hospital’s finances, which previously lost up to $9 million annually before the pandemic.
The hospital also faced challenges in 2025 when it began repaying funds to the Medicaid division, which had been disbursed based on prior data. The repayments were paused after a court hearing in December, with Greenwood Leflore filing a motion to extend the stay, citing efforts to negotiate a bond that would prevent immediate repayment and allow for a transition.
Legislative measures to aid the hospital have largely stalled this session. Bills proposing repayment extensions, sale or lease authorizations, and funding for potential buyers failed to advance through legislative committees. Despite this, discussions about the hospital’s future continue, with UMMC remaining a key player in the potential solution.
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
