How 3 hospitals on the brink of closure are fighting to stay open 

While 2026 kicked off with fewer hospital closures compared to the same period in 2025, three hospitals in three states are on the verge of closing, and their situations mirror what many facilities across the country are facing.

In Chicago, Roseland Community Hospital has negative 65 days cash on hand, meaning incoming dollars are spoken for before arrival. 

Roseland Community made its June 30 payroll because a Medicaid managed care organization made a large volume of claims payments in time to cover it. A $16 million state grant in Illinois’ fiscal year 2027 budget also offers potential relief, but only if the application moves fast.

“When we say that, here’s this grant money that’s there. This stabilizes us,” Tim Egan, president and CEO of Roseland Community Hospital, told Becker’s. “This will help keep the doors open. As I told [Sameer Vohra, MD, director of the Illinois Department of Public Health], who was very compassionate and understands our situation, we’re on our hands and knees begging.”

Roseland Community is also rolling out an austerity plan July 1: a 10% pay cut for senior executives and furloughs for around 30 of the hospital’s roughly 550 employees. Further service line and department cuts are also not being ruled out. 

In Montgomery, Ala., Jackson Hospital planned to close by July 1, but pushed the date back as it continues talks with Blue Cross Blue Shield of Alabama, along with city, county and state leaders on a path forward.

Jackson Hospital, which sought bankruptcy protection in February, has been in reimbursement disputes with BCBS Alabama for months.

While the hospital remains operational, CEO John Quinlivan told Becker’s that “important pieces” must be finalized to ensure it remains open. 

“I can’t tell you which way it’s going to go, but we are hopeful,” Mr. Quinlivan told Becker’s June 25. “Both organizations want to keep this hospital open. We especially want to keep the hospital open, but we’ve got to have a financial model that makes that possible.” 

In Mississippi, financially challenged Greenwood Leflore Hospital saw a small win June 29, after a state Chancery Court judge ordered the state’s Division of Medicaid to release a roughly $2.4 million payment to the hospital. 

The payment, expected June 30, aims to keep the hospital open through July 31, when it can be transitioned to a larger system. 

On June 18, the Mississippi Institutions of Higher Learning Board of Trustees voted for Jackson-based University of Mississippi Medical Center to take over Greenwood Leflore. The hospital’s property would be donated to UMMC under the approval. 

Greenwood Leflore already laid off 86 employees and cut services in April and pushed its closure date back from June 15 to July 31 after a county judge in mid-March temporarily blocked the state Division of Medicaid from collecting a $5.5 million debt from the hospital. 

While none of these hospitals have actually closed, each is running on thin ice with outcomes being determined in the days and weeks ahead. 

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