Jackson Hospital Stays Open as Talks Continue
Hospital says patient care continues without interruption as negotiations with Blue Cross and government leaders move forward
Jackson Hospital will remain open as negotiations continue over a long-term plan to stabilize the Montgomery medical center, offering a measure of relief after weeks of uncertainty over its future.
Hospital leaders said Monday that day-to-day operations remain unchanged while discussions continue with Blue Cross and Blue Shield of Alabama and local and State officials on a package aimed at putting the hospital on sound financial footing.
The update follows a tense week in which Jackson delayed a planned announcement on its future after what officials described as new developments in negotiations. The hospital had previously warned it could begin closure preparations if an agreement was not reached by late June.
"Nothing changes operationally today," said John Quinlivan, President and CEO of Jackson Hospital. "Jackson Hospital remains open, our emergency department remains open, and our teams continue to care for patients."
Quinlivan said discussions remain productive but incomplete.
"Our focus remains on protecting access to local healthcare for the River Region and ensuring any path forward is financially sustainable," Quinlivan said. "We will share additional updates as soon as we are able."
Hospital officials said they remain encouraged by ongoing engagement from Blue Cross and Blue Shield of Alabama, as well as city, county and State leaders, including Governor Kay Ivey, though key elements of a broader agreement still must be finalized.
The latest statement comes after Jackson's board postponed a decision on the hospital's future following a new proposal submitted during negotiations. Montgomery County Commission Chairman Doug Singleton said last week the parties had moved significantly closer to an agreement, while emphasizing there were no immediate plans to shut down the hospital. (https://www.wsfa.com)
The dispute centers on reimbursement rates paid by Blue Cross and Blue Shield of Alabama. Jackson argues its current payments are not enough to sustain operations and has sought higher reimbursement through both litigation and negotiations. Blue Cross has disputed the hospital's claims while maintaining that it has worked to assist Jackson during its financial restructuring. Earlier this month, a federal bankruptcy judge denied Jackson's request for a preliminary injunction that would have required Blue Cross to increase its payments, sending the parties back to the negotiating table.
Jackson entered Chapter 11 bankruptcy earlier this year, citing years of financial pressure, rising labor costs, stagnant reimbursement rates and the burden of caring for uninsured patients. Despite the bankruptcy filing, the hospital has continued operating while pursuing a court-supervised restructuring.
The hospital's financial future has drawn support from state and local leaders. Earlier this year, the City of Montgomery approved up to $22.5 million in funding over four years, while the State committed up to $40 million for future capital improvements once Jackson emerges from bankruptcy.
Jackson Hospital, founded in 1946, serves Montgomery and much of Alabama's River Region with cardiac care, cancer treatment, neurosciences, orthopedic services, women's health and 24-hour emergency care. Hospital leaders say preserving those services remains their top priority as negotiations continue.
