Mississippi’s Division of Medicaid filed court papers on June 18, 2026, seeking permission from a federal bankruptcy judge to withhold a scheduled $2.4 million payment to Greenwood Leflore Hospital. Hospital officials say the missed payment would force the 25-bed facility to close by June 30 and end a pending agreement for the University of Mississippi Medical Center to take over operations.
The hospital is the only source of emergency, inpatient, and surgical care for residents of the Central Delta region. It is owned jointly by the city of Greenwood and Leflore County.
Competing Court Orders Put $2.4 Million in Dispute
The Division of Medicaid says the hospital owes roughly $10 million and argues it has the legal right to hold the June payment. The agency contends that a March chancery court order, which temporarily halted Medicaid’s debt collection against the hospital, applied only to 2024 supplemental payments, not current-year disbursements.
The hospital’s attorneys filed a motion in federal district court the same day, asking a judge to order Medicaid to make the payment as scheduled or send the dispute back to chancery court. They argue the agency is trying to sidestep the March order.
“The Division of Medicaid has lost sight of the fact this hospital is maintaining access to physician clinics, emergency room, inpatient and surgical care for the residents of the Central Delta region of the state. We have no other words.”
Gary Marchand, Consultant to Greenwood Leflore Hospital Board, June 18, 2026
A Bankruptcy, 86 Layoffs, and a Shrinking Window to Survive
The hospital has faced financial strain since the COVID-19 pandemic. In April 2026, it laid off 86 staff members, closed clinics, and filed for bankruptcy to stay operational long enough to complete the UMMC deal. The hospital expects to finalize that agreement by August 1.
The Board of the Institutions of Higher Learning was scheduled to vote on the proposed transfer of Greenwood Leflore to UMMC on June 19, 2026. UMMC has said it intends to expand healthcare services and create training opportunities at the facility. Without the June Medicaid payment, hospital attorneys warn, the facility will collapse before the August deadline, cutting off the Central Delta’s only emergency and surgical provider.
Matt Westerfield, spokesperson for the Division of Medicaid, declined to comment, citing ongoing litigation.
What You Can Do Now
-
Call Mississippi Governor Tate Reeves’ office at (601) 359-3150 and tell him to direct the Division of Medicaid to release the $2.4 million June payment before the June 30 deadline. The governor’s office oversees the Division of Medicaid and has authority to intervene before the courts rule.
-
Call the Mississippi Division of Medicaid directly at (601) 359-6050 and tell them that withholding the payment will close the only emergency and surgical facility serving Leflore County and the surrounding Central Delta region.
-
Contact your Mississippi state legislators through the Mississippi Legislature’s member directory at legislature.ms.gov. Ask them to call on the Division of Medicaid to release the payment and protect rural healthcare access before the June 30 deadline.
-
Contact the Leflore County Board of Supervisors at (662) 453-1041. As a co-owner of the hospital, the county can apply direct pressure on state officials. Ask the board to issue a formal request that Medicaid release the scheduled payment immediately.
Sources
Mississippi Today: Greenwood Leflore Hospital Lays Off 86 Staff Members and Files for Bankruptcy
University of Mississippi Medical Center: UMMC Community Hospital Expansion Plans
Mississippi Institutions of Higher Learning: Board Approvals and Meeting Records