Hinds County (Miss.) Chancery Court Judge J. Dewayne Thomas temporarily blocked the Mississippi Division of Medicaid March 11 from collecting a $5.5 million debt from Greenwood (Miss.) Leflore Hospital, Mississippi Today reported March 12.
Gary Marchand, Greenwood Leflore’s former interim CEO and current consultant to its board, said the pause could last “many months to several years,” a spokesperson for the hospital told Becker’s.
Although Greenwood Leflore repaid $1.1 million in June 2025 and $900,000 in September 2025 toward the alleged $5.5 million overpayment, a $2.5 million repayment request from Medicaid in December almost closed the facility. It secured an agreement that reduced the December requirement to $447,000 and postponed future repayments pending resolution of ongoing legal issues.
In early February, Greenwood Leflore sought state legislative approval for Chapter 9 protection and signed a letter of intent in early March with the University of Mississippi Medical Center in Jackson, Miss., to potentially take over its services.
In early March, Mississippi lawmakers passed Senate Bill 3230 in a move to allow the hospital to seek bankruptcy. The bill is now with Gov. Tate Reeves.
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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