Greenwood (Miss.) Leflore Hospital has pushed back its potential closure date from June 15 to July 31, the Greenwood Commonwealth reported June 4.
Hospital officials originally sent a WARN notice to employees April 13 that it could close on June 14 if it is unable to stabilize its operations. In an updated WARN notice dated June 4, officials said they have continued to monitor operations and financial performance and they now expect the hospital “will cease operations and close all facilities on July 31,” according to the report.
“Such closure is expected to be permanent and will affect all employees,” the notice said.
The hospital’s original April notice came less than a week after it announced it was laying off 86 employees — about 17% of its workforce — and eliminating multiple service lines as it prepares for closure or acquisition by a larger health system.
The Mississippi Division of Medicaid has been seeking to recoup millions of dollars in alleged overpayments from the hospital. To date, the department has recouped $2.5 million in payments that would have otherwise been received by the hospital, according to the employee update. The department is seeking another $5 million. A Mississippi judge in March granted a temporary pause on the repayment.
Greenwood Leflore Hospital also filed for Chapter 9 bankruptcy protection April 15.
Among the options the hospital is exploring is a potential takeover by Jackson-based University of Mississippi Medical Center. A letter of intent signed in early March gives both parties 180 days to negotiate exclusively, though either side may terminate the deal with 30 days’ notice.
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