The Mississippi Institutions of Higher Learning board of trustees voted June 18 for Jackson-based University of Mississippi Medical Center to take over Greenwood (Miss.) Leflore Hospital, SuperTalk Mississippi Media reported June 19.
A spokesperson for Greenwood Leflore Hospital confirmed with Becker’s that the publication’s report was accurate.
GLH’s property will be donated to UMMC under the approval, which means the academic health system will not have to pay to absorb any of the hospital’s assets. Greenwood Leflore, which sought Chapter 9 bankruptcy protection April 15, signed a letter of intent in early March with UMMC to explore the potential takeover.
However, the deal faces a potential obstacle: The Mississippi Division of Medicaid has informed GLH it plans withhold the hospital’s June supplemental payment, a spokesperson from the hospital said in information shared with Becker’s. Without the June payment, the hospital’s cash reserves will be depleted by the end of the month.
A county judge temporarily blocked the Mississippi Division of Medicaid in mid-March from collecting a $5.5 million debt from Greenwood Leflore. In early June, the hospital pushed back its potential closure date from June 15 to July 31. It also laid off 86 employees, or about 17% of its workforce, and eliminated several services in early April.
UMMC declined comment to Becker’s.
Becker’s has also reached out to the Mississippi Institutions of Higher Learning board and the Mississippi Division of Medicaid for comment and will update this story should more information become available.
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