Greenwood Leflore Hospital Lays Off 86, Shutters 4 Services

Struggling Mississippi hospital takes drastic measures to address financial crisis

Apr. 10, 2026 at 10:34pm

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A ghostly, translucent X-ray photograph of a hospital bed frame, with glowing lines revealing the intricate internal structure, set against a dark background to symbolize the financial and operational challenges facing the hospital.An X-ray view of the financial and operational challenges facing Greenwood Leflore Hospital, as it grapples with layoffs and service closures.Greenwood Today

Greenwood Leflore Hospital in Greenwood, Mississippi, has conducted widespread layoffs, permanently shuttering four services and laying off 86 employees. The hospital has been facing a chronic financial crisis, exacerbated by the COVID-19 pandemic, and is exploring options to lease, sell or transfer the hospital to a larger healthcare system.

Why it matters

The closure of the hospital's outpatient rehabilitation center is a major blow to the community, as many patients relied on the specialized and personalized care provided there. With limited options for outpatient rehab in the area, some patients may now have to travel further to receive the care they need.

The details

The layoffs came as a result of the hospital's ongoing financial struggles and a potential takeover by another hospital system. The hospital also announced the closure of four services, including its wellness center, outpatient rehabilitation center, cardiac rehabilitation center and after-hours clinic. Michael Stewart, an occupational therapy assistant who lost his job of 20 years, expressed concerns about the impact on patients, many of whom had developed a close rapport with the staff and preferred the hospital's friendly atmosphere.

  • On April 8, 2026, Greenwood Leflore Hospital conducted the layoffs and announced the service closures.
  • The outpatient rehabilitation center will continue treating patients until May 1, 2026.

The players

Greenwood Leflore Hospital

A hospital in Greenwood, Mississippi that has been in operation since 1906 and has faced chronic financial struggles, especially since the COVID-19 pandemic.

Michael Stewart

A 20-year occupational therapy assistant who was laid off from the hospital's outpatient rehabilitation center.

Canary Parker

A long-time resident of Itta Bena in Leflore County who was a patient at the hospital's outpatient rehabilitation center and is saddened by its closure.

Gary Marchand

The former interim CEO and current consultant for Greenwood Leflore Hospital, who wrote that the hospital is exploring options to lease, sell or transfer to a larger healthcare system.

Carolyn McAdams

The former mayor of Greenwood, who said the University of Mississippi Medical Center almost took over the hospital in 2022 but backed out 72 hours before signing the agreement.

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What they’re saying

“Hearing the news really broke my heart. Last year, I broke my ankle and the Outpatient Rehab Center played a big part in me recovering and getting back on my feet. I feel bad for the employees losing their jobs. They really made me feel special.”

— Canary Parker, Long-time Itta Bena resident

“There are two other therapy places in Greenwood, but they don't take all insurance. If they don't have private insurance or the insurance (those places accept), they will have to go to surrounding areas in Cleveland, Grenada and maybe Indianola.”

— Michael Stewart, Occupational therapy assistant

“I understand the layoff, and I feel like it's for the better in the future. I just don't like the way they go about laying people off without giving them a heads up.”

— Michael Stewart, Occupational therapy assistant

What’s next

The University of Mississippi Medical Center is considering a possible takeover of Greenwood Leflore Hospital, which could help stabilize the facility's finances and services.

The takeaway

The closure of Greenwood Leflore Hospital's outpatient rehabilitation center highlights the ongoing challenges facing rural healthcare in Mississippi, where hospitals struggle to maintain financial viability and provide essential services to their communities. The potential takeover by a larger healthcare system could be a lifeline, but the future remains uncertain for patients and employees affected by the latest round of cuts.