Jackson Hospital announces new leadership as it struggles through bankruptcy
Jackson Hospital has announced a new board of trustees and CEO as it struggles through Chapter 11 bankruptcy protection.
The hospital says a new three-member board of trustees and the selection of John Quinlivan as chief executive officer will mark a pivotal step forward in the hospital’s ongoing bankruptcy and reorganization proceedings.
The new board took over on October 31.
The hospital says it will bring healthcare and financial expertise to guide the organization through restructuring, a bankruptcy recovery plan, infrastructure repairs, payer contract improvements and other changes.
Montgomery County Commission Chairman Doug Singleton told Action 8 News last week that the Montgomery County Commission has pledged $10 million to help the hospital recover, while the Montgomery City Council has pledged another $25 million, if the state and others pitch in to help, Singleton said. He said the hospital also needs more than $100 million in repairs due to deferred maintenance issues, including elevators, the parking deck and other infrastructure.
New Board Members
Charles Evans, the new chairman of the board, is an internationally recognized leader in hospital management, the hospital says. At HCA Healthcare, he served as president of the Eastern Group, where he oversaw more than 120 hospitals. He then launched International Health Services Group in 2007 to support health services development in underserved areas of
the world. Evans is credentialed as a Governance Fellow by the National Association of Corporate Directors (NACD) and a Fellow in the American College of Healthcare Executives (ACHE), where he also served three years as chairman officer.
Board member Jeff Crudele has built a career spanning over 30 years and is recognized as one of the most accomplished senior financial executives in the healthcare industry, the hospital says. He recently served as chief financial officer of the Allegheny Health Network, where he orchestrated a significant financial turnaround.
Board member Gary M. Murphey brings more than 35 years of experience in financial examinations, forensic accounting and managing financially distressed companies and has served in roles that include CEO, CFO and chief restructuring officer, the hospital says.
As Action 8 News has reported, the hospital filed for Chapter 11 bankruptcy protection in February. Last year, it missed a $60 million interest payment on bonds. S&P Global said it lowered the hospital’s long-term rating to ‘D’ from ‘CC’ on The Medical Clinic Board of the City of Montgomery’s series 2015 bonds. S&P Global says that it understood that Jackson’s liquidity is very thin and insufficient to meet the bondholders’ demand for full payment.
In February, Jackson Hospital said it experienced significant financial pressures in recent years due to increased labor costs, stagnant reimbursement rates, a challenging payor mix and fallout from COVID-19, among other factors. It said without Medicaid expansion in Alabama, it suffered significant financial losses due to its care for uninsured people. In 2023 alone, the hospital said gross charges related to the care of uninsured patients exceeded $45 million.
Jackson Hospital is licensed for 344 beds, serving Montgomery and the River Region as a community not-for-profit facility. It opened in 1946 with 37 beds and five doctors.
