After initially approving Holly Springs, Miss.-based Alliance HealthCare System to become the first Mississippi hospital to transition to rural emergency hospital status, CMS is revoking the designation from the hospital, Mississippi Today reported April 12.
The designation was revoked because the hospital is only an hour away from Memphis, Tenn., Mississippi's state health officer told the publication.
The transition would have meant that the hospital ended inpatient services in exchange for monthly payments from the federal government that would help keep the hospital open.
The state health department supported Alliance's move toward rural emergency status. The hospital had been losing money for 15 years and took an even bigger financial hit during the COVID-19 pandemic.
Alliance had already begun working with Tupelo-based North Mississippi Medical Center to transfer patients.