Greenwood (Miss.) Leflore Hospital has signed a letter of intent with the University of Mississippi Medical Center in Jackson, Miss., to potentially take over its services amid ongoing financial challenges, Mississippi Today reported March 6.
Greenwood Leflore sought state legislative approval to seek Chapter 9 protection in early February amid ongoing negotiations with the Mississippi Division of Medicaid. It also narrowly avoided closure in December 2025.
Gary Marchand, Greenwood Leflore’s former interim CEO and current consultant for its board, said in a court filing that the hospital’s financial status has not improved since December. Should the Division of Medicaid resume collecting its debt, the facility could likely close, the publication reported.
“GLH is also exploring options to lease, sell or otherwise transfer the hospital to a larger healthcare system, which would allow GLH to continue to provide services to the people in its service area,” Mr. Marchand said, according to the publication.
Mississippi lawmakers also fast-tracked Senate Bill 3230 in early March to allow the hospital file for bankruptcy. The bill is currently with the governor.
A Feb. 11 excerpted version of the letter of intent said Greenwood Leflore would contribute all land, facilities, assets and operations to UMMC, which is the state’s only academic medical center. The transfer would give UMMC full authority over the hospital.
UMMC and Greenwood Leflore had explored a partnership in 2022; however, those talks collapsed. Both parties have agreed to not pursue other sale or merger proposals for 180 days while negotiations proceed under the current negotiations. They can also dissolve the agreement by mutual consent or with 30 days’ prior written notice from either party.
Both Greenwood Leflore Hospital and UMMC declined to provide Becker’s with a comment at this time.
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