Greenwood Leflore Hospital says it could close in two months even while it continues to negotiate a deal for another health-care system to take over the financially teetering hospital.
Hospital employees were notified by letter on Monday that GLH “will cease operations and close on June 15, 2026,” although an accompanying memo clarified that the anticipated closure could be postponed depending on subsequent developments.
The letter was issued in order to comply with the federal Worker Adjustment and Retraining Notification (WARN) Act, which is issued when a potential closure is imminent within 60 days.
Click on Title To Read Document
The Commonwealth obtained a copy of the letter, signed by Key Britt, vice president of administrative services, and the memo to employees.
The hospital has been struggling for several years to offset losses that have severely depleted its cash reserves. Its most recent crisis was triggered by clawbacks from the state Division of Medicaid of millions of dollars in supplemental payments to the hospital.
“In the short term, the hospital continues to seek relief from Medicaid recoupments announced in June 2025,” the memo stated. “To date, Medicaid has recouped $2.5 million in payments that would otherwise have been received by the hospital. An additional $5.0 million remains at risk. The hospital is actively challenging these recoupments through administrative processes and court proceedings.
“Looking ahead, the hospital is in negotiations with a large healthcare system to transfer all of its services to that organization. The goal is to complete this transaction later this summer.
“These recoupments are significantly affecting the hospital’s ability to fund its operations, and there is no guarantee that negotiations with the larger system will be successful. To help ensure the hospital can continue providing services during this period, a Chapter 9 bankruptcy filing is under consideration. This step would allow operations to continue while efforts to complete a transaction are ongoing.
“As a result, we are issuing notice under the WARN Act today, which you will receive separately from this update. The WARN Act requires employers to notify employees of a potential closure or significant workforce reduction that results in loss of employment. This could occur if services are transferred to the larger system, if the hospital ceases operations entirely, or if a substantial portion of operations is closed.
“The hospital reserves the right to amend the WARN Act notice and revise the effective date as additional information becomes known and as it continues to assess its financial condition. This assessment includes the potential positive impact of bankruptcy on preserving cash reserves, fluctuations in inpatient admissions and outpatient visits and their associated revenues, the timing of payments from government programs, and the availability of new financing sources.
“We want to express our deepest gratitude to every member of our hospital workforce for your unwavering commitment during these challenging financial times. Your dedication, resilience, and compassion have ensured that our patients continue to receive the care they need, even in the face of uncertainty. Thank you for your loyalty, your perseverance, and the vital role you play every single day.”
The memo and a similar WARN Act letter were also sent to Greenwood Mayor Kenderick Cox, Leflore County Administrator Cynthia Stanciel, Board of Supervisors President Eric Mitchell, District 5 Supervisor Robert Collins and Greenwood City Council President Ronnie Stevenson informing them of the possible closure. The hospital is jointly owned by the city of Greenwood and Leflore County.
Gov. Tate Reeves and the Mississippi Department of Employment Security were also sent a copy of the letter.
“I am writing on behalf of the Board of Trustees of Greenwood Leflore Hospital to inform you that the Greenwood Leflore Hospital (located at 1401 River Road, Greenwood, Mississippi) and all of its associated facilities will cease operations and close on June 15, 2026,” Britt said in the letter to officials. “This closure will affect substantially all employees (approximately 425) and is expected to be permanent. Those employees are expected to be permanently separated from employment effective June 15, 2026. All affected employees have been notified of this closure and their separation date by correspondence dated today.”
The hospital is issuing the WARN notice less than a week after a layoff of 46 full-time and 40 part-time employees while cutting four services. It also comes less than a year after the state Division of Medicaid determined that the Greenwood hospital had been overpaid more than $5 million in 2024 and 2025 from the Mississippi Hospital Access Program because those payments had been based on patient volumes prior to the hospital’s cost-cutting reductions in services.
State Medicaid officials clawed back about $2.5 million in 2025, but those recoupment payments were halted in December 2025 by a Hinds County chancery Judge. The judge affirmed that decision to stop recoupments in March, but that relief was not enough to reverse the hit to the hospital’s cash reserves.
According to the February financial statement, the hospital has accumulated a net loss, not counting depreciation, of $3.56 million for the first five months of the current fiscal year. The hospital had only $2.19 million in cash reserves. To date, total revenues are down nearly $4.4 million compared to the same point a year ago.
MHAP had been a lifeline for Greenwood Leflore Hospital. After the federal government approved a revision to the Medicaid supplement in 2023, the hospital received around $25 million before the clawbacks began. That and an infusion of $7.5 million from a line of credit secured by the Leflore County Board of Supervisors helped the hospital stay afloat. Its 2024 audit showed the hospital reducing its deficit from a $16.2 million loss in fiscal year 2023 to just over $1 million for 2024.
However, the 2025 audit showed that the hospital had a $13 million reduction in payments from MHAP due to the Division of Medicaid’s finding. It also reflects the reduced patient volume due to the closure of its labor and delivery unit and cuts to other services.
The University of Mississippi Medical Center has been in negotiations with the Greenwood hospital to take over operations later this year, according to Mississippi Today. This would be the third time UMMC has been in negotiations with Greenwood Leflore Hospital since 2018.
The Legislature passed a bill this year to allow Greenwood Leflore Hospital to file for Chapter 9 bankruptcy. It became law without the signature of Reeves. No bankruptcy filings have been entered as of Monday morning.
- Brent Maze is the editor and publisher of The Greenwood Commonwealth. Contact him at 662-581-7243 or bmaze@gwcommonwealth.com.
