Montgomery Leaders Weigh Additional $15M Boost to Keep Jackson Hospital Open
MONTGOMERY, Ala. (WAKA) – New details emerged this week in the effort to keep Jackson Hospital open as local leaders weigh an additional multi-million dollar funding request.
During a meeting earlier this week, the Montgomery County Commission discussed the possibility of allocating another $7.5 million to support the hospital. The City of Montgomery is also expected to be asked for a matching $7.5 million contribution.
Commission Chairman Doug Singleton said the combined $15 million would go toward critical repairs and infrastructure upgrades at the hospital. “We can put money into the operations of the hospital and keep it open and keep it running, but if we do not address the infrastructure issues, the plumbing, the heating, the air conditioning, the electrical, the parking deck, the wiring all of that kind of stuff has to be done. If we don’t, we’re just going to delay it down the road from having the same problems. So if we’re going to be committed and we’re going to use the taxpayers dollars, we’ve got to make sure we have a plan that includes not only operations today, but in the future. And the ability to sustain that and making sure the hospital is in great physical shape too.”
The city and county have already pledged up to $25 million for operating costs. Singleton said local leaders understand the state would match the new total of $40 million, bringing the combined commitment from local and state governments to $80 million, though Governor Kay Ivey has not announced a specific amount.
A spokesperson for the governor says she’s been in talks with local leaders for months and will announce her commitment “at the appropriate time.”
Here is her full statement: “The health and safety of citizens served by Jackson Hospital is of paramount concern to Governor Ivey, but so is the responsible stewardship of taxpayer dollars. To this end, Governor Ivey has been engaged with local officials, federal partners and Jackson Hospital stakeholders for months and continues to closely monitor all developments regarding the hospital’s future. Mayor Steven Reed requested a meeting with the governor Monday where, among a handful of other topics, Jackson Hospital was discussed. Governor Ivey expects local officials to engage further to support Jackson, and she will respond with her commitment at the appropriate time.”
According to Jackson Hospital’s proposed restructuring plan, the facility will need $293 million over the next five years to return to profitability. Ongoing negotiations with insurance companies and potential federal funding sources are expected to play key roles.
Singleton says, “The hopes are that the commitment from the city, county, and state of Alabama will help to convince the bankruptcy judge that we can come out of bankruptcy and that we have a plan, that Jackson Healthcare has a very viable plan to save this hospital and not only save it, but make it prosperous and continue to serve the people of Montgomery County.”
Time is ticking, because a federal bankruptcy judge has given Jackson Hospital until the end of the month to present a viable restructuring plan or prepare to close it’s doors.
The Montgomery County Commission is expected to vote on the additional funding for Jackson Hospital at their December 16 meeting.
