Jackson Hospital to remain open after agreement made with Blue Cross Blue Shield
MONTGOMERY, Ala. (WAKA) – Jackson Hospital officials say they will remain open.
The announcement comes after the Board of Directors says a verbal agreement has been made with Blue Cross Blue Shield of Alabama.
Hospital officials made the announcement on social media Friday:
“Our Board of Directors has announced a path forward for the hospital to remain open following a verbal agreement with Blue Cross and Blue Shield of Alabama.
More details will be shared soon. Today is about our employees and their unwavering commitment to this community.”
Blue Cross Blue Shield Director of Corporate Communications and Community Relations Sophie Martin released the following statement to Action 8 News:
“Blue Cross and Blue Shield of Alabama is pleased Jackson Hospital will remain open and continue serving the Montgomery community and River Region.
Blue Cross has worked with hospital leadership and other stakeholders to keep their doors open and provide patients access to the care they need. Throughout this process, our focus has remained on supporting our members and the community.
We appreciate the efforts of all parties involved in reaching this outcome and look forward to continuing our partnership in support of the health and well-being of our customers, the River Region and Alabamians.”
Last week, the hospital had scheduled an announcement about its future for the afternoon of Friday, June 26. The announcement was canceled due to the hospital saying there had been new developments the night before. The hospital had set a deadline of Thursday, June 25, to have its financing in order or to possibly begin a process to close the 80-year-old hospital.
The hospital has said it needs $293 million to fully recover from years of financial struggles. It has said it only has commitments of $61 million, including $35 million from Georgia billionaire Rick Jackson, who is also that state’s Republican nominee for governor.
As Action 8 News has reported, the hospital filed for Chapter 11 bankruptcy protection in February of 2025. That came after it missed a $60 million interest payment on bonds.
In filing for bankruptcy, 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.
