UMMC looks to save Greenwood Leflore Hospital from closure by assuming ownership of facility

• IHL Senior Associate Commissioner for Finance John Pearce said UMMC intends to utilize the facility to expand healthcare services and create additional training opportunities for students, residents and fellows in the community hospital setting.

The University of Mississippi Medical Center could soon assume ownership of the Greenwood Leflore Hospital, a deal that is expected to maintain medical care in an area where the health system was considering bankruptcy in April. 

A donation approval by the Board of Trustees of the Institutions of Higher Learning, which governs the state’s universities, could allow the Greenwood Leflore facility to not only continue serving residents but also become a learning center for doctors who plan to practice in community settings.

IHL Senior Associate Commissioner for Finance John Pearce said the property is being donated by the City of Greenwood, Leflore County and Greenwood Leflore Hospital through its Board of Trustees.

Greenwood Leflore Hospital and the adjoining properties have an appraised value of more than $1 million. Since the property is being donated, there will be no cost to UMMC.

“UMMC intends to utilize the facility to expand healthcare services and create additional training opportunities for students, residents and fellows in the community hospital setting,” Pearce explained.

There is a portion of the property, the Flex building, that sits on 16th Section land. That lease is not set to expire until July 2046.

Board member Gee Ogletree said acceptance of the donation was not taken lightly. 

“This has been an area that we looked at very carefully,” said Ogletree, adding that the university’s chancellor and his team provided detailed information on the risks and opportunities involved in the deal.

The move is expected to save the Greenwood Leflore Hospital from closure. In April, a memo was sent to the facility’s employees alerting them that the hospital was at risk of shutting its doors. That memo stated that the hospital was set to close by June 15 if a financial workaround was not found. One of the reasons for the closure was said to be due to changes to Medicaid reimbursements. 

“To date Medicaid has recouped $2.5 million in payments that would have been received by the hospital. An additional $5 million remains at risk,” the letter to employees in April described.

The memo alluded to the potential for bankruptcy but also said discussions were ongoing with a “larger entity,” adding, “there is no guarantee that negotiations with the larger system will be successful.”