Greenwood Leflore Hospital warns workers of mass layoffs ahead of expected closure
By Gwen Dilworth | Originally published by Mississippi Today
Greenwood Leflore Hospital issued a formal notice Monday warning employees of potential large-scale layoffs as the hospital prepares to close on June 15, officials said.
In a statement, the hospital said its warning complied with the federal Worker Adjustment and Retraining Notification Act, which requires employers to provide employees notice of mass layoffs within 60 days. However, the hospital is still in discussions with a larger health care system about potentially taking over the hospital.
“The date reflects compliance with federal law, not a guaranteed closure,” hospital administration said in a statement. “The hospital is taking necessary steps to preserve essential medical services for the hospital’s service area while meeting all legal requirements.”
Established in 1906, the 35-bed public hospital serves an area of the Mississippi Delta with limited access to health care and is jointly owned by the city of Greenwood and Leflore County. It has faced serious financial challenges since the onset of the COVID-19 pandemic, repeatedly warning that its fragile condition could force it to close.
These concerns have intensified in recent months, largely because of a dispute with the Mississippi Division of Medicaid over outstanding debts owed by the hospital, according to hospital officials.
This is not the only time the financially troubled hospital has filed a WARN Act notice in recent years.
The facility filed such a notice in October 2022, warning that 600 employees could be laid off that December. This notice came amidst another period of acute financial crisis. During that time, the hospital laid off as many as 80 employees and shuttered services, including its labor and delivery unit. The hospital was in negotiations with the University of Mississippi Medical Center over a possible takeover, but those conversations stalled in November 2022.
This year’s notice reflects a similar pattern of events. The Greenwood hospital announced Wednesday it was permanently laying off nearly a fifth of its workforce, including 46 full-time and 40 part-time positions, and planned to close several service lines to prepare to transfer operations to a larger health system or potentially close.
Mississippi Today previously reported that the hospital and its owners signed a letter of intent in February to discuss a possible transaction in which the hospital would contribute all land, facilities, assets and operations to UMMC, the state’s only academic medical center. The proposed donation would include clinics, ancillary facilities and physician practices, and it would give UMMC full authority and control over the hospital.
Greenwood City Council President Ronnie Stevenson said the hospital is currently in ongoing discussions with the University of Mississippi Medical Center regarding a possible takeover of the hospital.
“It’s a scary situation, but it does not mean doomsday right now,” Stevenson said. “There are still going to be options and we are just praying for the best. It’s not a dead end right now.”
In a statement, the hospital said it does not plan to close any additional services lines.
“The hospital’s priority is to maintain critical services for the community,” officials wrote.
Hospital administration also explained that the WARN notice is related to financial planning that includes the possibility of filing for Chapter 9 bankruptcy, officials said. Lawmakers passed a bill during the legislative session that would allow the hospital to file for bankruptcy.
Stevenson said the hospital is currently consulting with attorneys about the potential bankruptcy filing.
The Mississippi Department of Employment Security has not yet received a WARN notice from Greenwood Leflore Hospital, Pam Hosey, the rapid response coordinator for the agency, said Tuesday. Such notices must be filed at least 60 days before layoffs affecting 50 or more employees at a business with over 100 full-time workers, making Wednesday the deadline based on the hospital’s reported closure date.
The hospital filed a WARN notice in April 2020, alerting staff of 120 potential temporary layoffs due to the COVID-19 pandemic.
Amid its ongoing financial struggles, the hospital has said a dispute with Medicaid over repayment of debt, which stemmed from overpayments from a program designed to support struggling hospitals, has contributed significantly to its budgetary struggles.
In June, the Mississippi Division of Medicaid notified the hospital it would recoup $5.5 million in state-directed payments, or supplemental funds intended to offset low Medicaid reimbursement rates. The state recovered about $2 million from the facility in 2025.
The recoupments are currently paused due to a March court order. A Hinds County Chancery judge directed the division to temporarily suspend collection efforts after the hospital said resuming the recoupments could force the Delta facility to close. The court ordered the hospital to post a $50,000 cash bond within 30 days. The hospital submitted a notice that it filed the bond on March 26.
Gary Marchand, the hospital’s former interim CEO who serves as a consultant for the hospital’s board, wrote in a March court filing that if the Division of Medicaid were to resume the recoupments, it could present severe consequences for the hospital and jeopardize its ability to complete negotiations over a potential lease, sale or transfer of the facility.
If the recoupments resume, “the likelihood of successfully completing these negotiations will be irreparably harmed,” Marchand said, pointing to the importance of staff remaining at the facility and the continued maintenance of property and equipment.
Before the recoupments began, hospital leaders said they believed the facility’s financial outlook was improving. The hospital was accepted into the federal Rural Community Hospital Demonstration Program in 2025. The program allows selected hospitals to be reimbursed based on actual costs for inpatient care instead of a fixed amount. The designation is expected to increase the hospital’s Medicare inpatient payments by about $1.3 million a year, Marchand said in a December memo to staff and board members.
The hospital also began providing skilled nursing care for people recovering after hospital stays this year, but higher payments for the services are delayed until late 2026.
Legislators’ attempts to support the hospital during this year’s legislative session were unsuccessful. Such measures could give hospitals more time to settle overpayments during times of financial hardship and outline the terms for a potential sale of the hospital, backed by a proposed $10 million state appropriation.
Stevenson said local leaders are communicating with Gov. Tate Reeves and state lawmakers for support in navigating the hospital’s current crisis.
“We’re going to fight this ‘til the end,” Stevenson said.
This article was originally published by Mississippi Today and is republished here under a Creative Commons license.
Source: Original Article
