Financially teetering Greenwood Leflore Hospital is laying off 86 employees and eliminating four more of its services in the hopes of surviving long enough to be taken over by another operator.
Hospital officials met on Wednesday with the 46 full-time and 40 part-time employees who will be affected by the permanent layoffs. A memorandum was also sent to the medical staff, Greenwood Mayor Kenderick Cox, City Council President Ronnie Stevenson, Leflore County Board of Supervisors President Eric Mitchell, County Administrator Cynthia Stanciel and Chancery Clerk Debra Hibbler from hospital administrators explaining the decision to terminate the employees.
“As we have previously shared with you, the hospital’s financial challenges have increased since last summer’s announced reduction in Medicaid reimbursements,” according to the memorandum obtained by the Commonwealth. “Negotiations are ongoing with respect to the transfer of services to a larger health care system and seeking protection of bankruptcy court to further the hospital’s cash reserves.
“In order to protect the short-term operations and protect service availability to the residents of nearby communities, an analysis was conducted of employees needed to complete the transfer of services in event of successful conclusion of negotiations.
“Today, the hospital is notifying 46 full-time and 40 part-time employees that their services are no longer needed and their positions terminated.”
In an email responding to questions regarding the layoffs, the hospital administration said, “Services that will be closing immediately are the after-hours clinic and wellness center. GLH’s outpatient rehab center and its cardiac rehab will be closing within 15 days. The remainder of the layoffs will be in additional departments across the hospital with immediate reductions.”
“Staffing levels and services are being reduced as the hospital prepares for either a transition of operations to a larger health system or a potential closure,” the email continued. “All layoffs are permanent. Most layoffs are effective immediately. A small number of employees — primarily therapists — will be temporarily retained to support the transition and continuity of care for active patients.”
In trying to respond to multimillion-dollar annual losses that have severely depleted its cash reserves, the hospital has cut a number of unprofitable services and implemented a series of layoffs over the past four years.
Prior to the first round of cutbacks in 2022, the hospital had more than 800 employees, plus there were an additional 100 contracted employees. Following the latest reductions, a total of 425 employees and 58 contracted employees will remain at the hospital.
The cuts will not affect the following services:
- Diagnostic liver testing
- Emergency medicine
- Gastroenterology/endoscopy
- Interventional radiology
- Laboratory testing
- Neurology
- Outpatient cardiopulmonary diagnostic testing (electrocardiogram, pulmonary function test, echocardiogram, electroencephalogram, stress test and Holter monitor)
- Outpatient infusion services
- Radiation oncology
- Radiology diagnostic testing (MRI, CT, ultrasound, X-ray, nuclear medicine, mammogram and bone density scan)
- Retail pharmacy
- Surgery (general, vascular, orthopedic, and ear, nose and throat)
- Swing bed
GLH will also continue to operate its physician clinics outside of its main building.
“While some areas of the hospital are being restructured, our emergency department remains fully operational, fully staffed and fully committed to delivering the same high level of care our community depends on — 24 hours a day, 7 days a week,” the administrative staff said.
No decisions have been made about the buildings where services are being shuttered. The administrative staff said future use will depend on ongoing negotiations with a larger health system.
Mississippi Today reported last month that the University of Mississippi Medical Center was potentially pursuing the takeover of the Greenwood hospital. The current prospect of a UMMC takeover is a third attempt to try to get the state’s largest hospital to come to the rescue.
In 2018, in response to overtures from the Greenwood hospital, UMMC proposed an affiliation, but after the GLH board declined to act on the proposal, UMMC backed away. Then in 2022, UMMC was the lone bidder on a long-term lease of the hospital, but during the final negotiations, UMMC withdrew its interest for reasons that were never publicly explained.
The Greenwood hospital is jointly owned by Leflore County and the city of Greenwood. When contacted Wednesday, both Cox, the Greenwood mayor, and Mitchell of the Board of Supervisors declined to comment.
The state Legislature at the request of the Board of Supervisors and City Council passed a bill last month allowing the hospital to seek Chapter 9 bankruptcy. It was signed by Gov. Tate Reeves on March 16. As of Wednesday, no bankruptcy filings have been made.
Hospital officials thanked their medical staff and the public officials who have been supporting the hospital through its financial difficulties.
“We cannot express our appreciation and gratitude to you and our employees for all that has been done to get us this far and ask that you keep those affected by this difficult decision in your thoughts and prayers,” the memorandum stated.
- Brent Maze is the editor and publisher of The Greenwood Commonwealth. Contact him at 662-581-7243 or bmaze@gwcommonwealth.com.
