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Medicaid Threatens to Stop MHAP Payment to Greenwood Leflore Hospital as IHL Approves Property Donation to UMMC

The hospital says withholding $2.4 million in Medicaid payments would leave it without enough cash to stay open.

  • On Thursday, Greenwood Leflore Hospital consultant Gary Marchand warned that the Mississippi Division of Medicaid's request to withhold $2.4 million in Mississippi Hospital Access Program payments could make the University of Mississippi Medical Center takeover deal "dead on arrival."
  • The conflict originated last summer when the Division of Medicaid began clawing back supplemental funding following a recalculation of patient volumes; DOM asserts GLH still owes approximately $3 million from 2024 overpayments.
  • Institutions for Higher Learning Board of Trustees members unanimously approved Thursday to receive all GLH property as a donation, pending approval from the Greenwood City Council and the Leflore County Board of Supervisors.
  • Without these payments, the hospital warns it will deplete remaining cash reserves and close June 30, ending access to emergency and surgical care for roughly 25,000 residents in the Central Delta.
  • GLH has asked U.S. District Judge Kristi H. Johnson to intervene regarding the recoupment stay, while the Division of Medicaid seeks a "somewhat advisory opinion" from the Bankruptcy Court on whether ongoing payments violate prior Hinds County Chancery Court orders.
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Medicaid threatens to stop MHAP payment to Greenwood Leflore Hospital as IHL takes up property donation

Greenwood Leflore Hospital has filed a motion asking a federal judge to order the Mississippi Division of Medicaid to release $2.48 million from the Mississippi Hospital Access Program to ensure the financially plagued hospital will stay open until July 31 while Mississippi's Institutions of Higher Learning considers accepting the donation of th

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Delta Democrat-Times broke the news on Thursday, June 18, 2026.
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