Mississippi judge orders state Medicaid officials to pay hospital $2.4 million, keep it open through July

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A Mississippi Chancery Court judge ordered June 29 the state’s Division of Medicaid to release a scheduled payment of around $2.4 million to Greenwood (Miss.) Leflore Hospital.

The order came after the case was sent back to the chancery court by Mississippi Southern District Court following an attempt to block the funds.

“DOM staff stated the payment will be made on June 30,” Gary Marchand, a Greenwood Leflore Hospital board consultant and former Greenwood Leflore Hospital interim CEO, said in a statement shared with Becker’s. “This payment will enable the hospital to remain open until July 31 until a transition to a larger hospital system occurs.”

The Mississippi Institutions of Higher Learning board of trustees voted June 18 for Jackson-based University of Mississippi Medical Center to take over Greenwood Leflore Hospital. Under the approval, the hospital’s property will be donated to UMMC. 

In mid-March, a county judge temporarily blocked the state Division of Medicaid from collecting a $5.5 million debt from Greenwood Leflore Hospital. The hospital then laid off 86 employees and eliminated multiple services in early April and pushed its closure date back in early June from June 15 to July 31.

Becker’s has reached out to the Mississippi Division of Medicaid for comment and will update this story should more information become available.

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