Greenwood Leflore Hospital has filed a motion asking a federal judge to order the Mississippi Division of Medicaid to release $2.48 million from the Mississippi Hospital Access Program to ensure the financially plagued hospital will stay open until July 31 while Mississippi's Institutions of Higher Learning considers accepting the donation of the property Thursday.
If payment is withheld, it will jeopardize an agreement for University of Mississippi Medical Center to take over the hospital on Aug. 1 and force the hospital to close June 30. The agreement is on the agenda for IHL’s board of trustees meeting Thursday at 9 a.m. at the Universities Center in Jackson.
In a brief supporting its motion filed Wednesday, the hospital was notified June 9 that the state Medicaid division “did not intend” to make its June MHAP payment. Craig Geno, the attorney representing the Division of Medicaid and executive director Cindy Bradshaw, stated in an email to GLH’s attorneys that withholding the June MHAP payment “was their initial position. I get the impression that may get looked at again since the plan has been filed. But to avoid any last-minute scrambling, we probably ought to start thinking about how to address it sooner rather than later. And, of course, I’ll update you the minute I get the update.”
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Doug Noble, an attorney representing the hospital, replied on Monday asking for confirmation of the nonpayment. “The uncertainty created by DOM’s statement of intention not to make the payment is giving us no choice but to file something before it’s too late.” The motion states that the hospital has not received a response.
“Without this payment, GLH will be forced to cease operations and close by approximately June 30, 2026,” the hospital said in the brief. “Expediting consideration of this motion is critical because the June MHAP payment, which Appellees (the Division of Medicaid and Bradshaw) threaten to withhold, is due by the end of this month.”
Hospital officials also confirmed in the motion, which was filed Wednesday, that it has agreed to the terms of a takeover by UMMC. The proposed “contribution and asset transfer agreement” has been submitted to the bankruptcy court in the hospital’s bankruptcy plan and was filed as documentation supporting the motion against the Mississippi Division of Medicaid.
The hospital stated that one of the terms of the agreement is that Greenwood Leflore Hospital “shall not, prior to the closing date cease operations, close GLH or effect a close of business.” Without the MHAP payment, the hospital will be forced to shutter prior to the Aug. 1 closing date, “thus jeopardizing the closing of the UMMC transaction and risking the cessation of all hospital services in the central Mississippi Delta.”
The hospital is asking the court to grant the motion to remand the case back by Monday to Hinds County Chancery Court to seek a new order to stay Medicaid’s recoupments and issue the payment to GLH. If the federal court has jurisdiction, the hospital argues that the court should issue an emergency order prohibiting Medicaid from withholding or reducing the MHAP payment.
The hospital’s attorneys argued the chancery court ruling is binding and that the Medicaid division is violating its own rules and regulations by clawing back the $2.48 million payment it was owed according to the state agency’s Sept. 17, 2025, “final agency action.” The motion cited law stating Medicaid providers “are entitled to a hearing” if its actions resulted in the withholding of funds resulting from overpayments.
In June 2025, the Mississippi Division of Medicaid ruled that the hospital had been overpaid more than $5.5 million in 2024 and $1.78 million in 2025 from MHAP because the supplement disbursements had been calculated based on patient volumes prior to the hospital’s series of cost-cutting reductions in services.
The state agency clawed back more than $3 million and was planning to take back $900,000 per fiscal quarter until the overpayment was repaid. However, the hospital appealed to the chancery court saying the agency violated its own policy by not allowing the hospital a hearing on the recoupments. The court cut the December 2025 recoupment to $447,000 and later issued a ruling in March pausing all additional clawbacks while the hospital received full MHAP funding.
The hospital argues that Medicaid’s decision to not issue the June MHAP payment violates the agency’s own rules and that chancery court ruling should be followed.
IHL’s Board of Trustees will consider a motion to receive ownership of Greenwood Leflore Hospital situated on approximately 14.5 acres of land on River Road.
“UMMC is interested in acquiring the property to increase training opportunities for students, residents and fellows in facilities with healthcare settings that more closely match those of the communities in which many will eventually practice and be employed, outside the academic medical center setting. UMMC will utilize the property to operate hospital, clinical and medical services as UMMC deems appropriate,” the board packet stated.
The property also includes the wellness/outpatient rehabilitation center in the 1800 block of Strong Avenue, the plant shop on Chambers Street and the flex building in the 1400 block of Strong Avenue.
UMMC would receive the donation if it is approved by IHL and the hospitals owners, the City of Greenwood and Leflore County Board of Supervisors. UMMC staff is recommending approval of the agreement.
