WATCH: Jackson Hospital taking next steps to emerge from bankruptcy
Jackson Hospital CEO John Quinlivan speaking at a news conference Monday, August 17, 2026, in Montgomery – Photo from WAKA Action 8 News
MONTGOMERY, Ala. (WAKA) – Montgomery’s Jackson Hospital has announced it is taking the next steps to emerge from Chapter 11 bankruptcy protection.
At a news conference this afternoon, CEO John Quinlivan announced that the necessary paperwork will be filed today with the federal bankruptcy court. This comes following the hospital’s announcement on July 3 that it would remain open and not close, which had been a possibility.
This milestone comes following an agreement with Blue Cross Blue Shield of Alabama and financial support from local and state governments. Quinlivan said the state’s support is contingent on the hospital emerging from bankruptcy.
Blue Cross and Blue Shield of Alabama and the hospital had long been at odds over insurance reimbursement rates. Quinlivan said there were frustrations on both sides, but they kept negotiating without giving up.
He thanked Gov. Kay Ivey and her Chief of Staff Liz Filmore. He said without their support, the hospital would have likely closed a year ago. In addition, he said Montgomery County Commission Chairman Doug Singleton gave his heart and soul to ensure the hospital had a future.
Gov. Kay Ivey released this statement:
“Only weeks away from its 80th anniversary, Jackson Hospital is reborn today stronger and ever more committed to delivering the most trusted medical care to the Capital City and River Region. Jackson Hospital’s agreement to emerge from bankruptcy and keep its doors open to offer a wide range of care, including emergency services, is the direct result of a resolute partnership between state and local officials and hospital leadership. I want to personally thank Jackson Healthcare CEO Rick Jackson for his commitment to preserving this historic lifeline that so many depend upon every day. This agreement to save Jackson Hospital is monumental good news for Montgomery and all of Central Alabama!”
The Jackson Investment Group is also providing the hospital with financial aid. That organization is run by Rick Jackson, who is the Republican nominee for governor of Georgia.
Quinlivan didn’t disclose specifics about the hospital’s financial structure. He said Jackson must manage its costs better, rebuild some of its services and grow revenue. On top of that, he says the hospital faces $150 million in infrastructure needs and another $50 million in capital needs for medical equipment.
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.
