Jackson Hospital makes leadership changes as it faces financial restructuring
Montgomery-based Jackson Hospital & Clinic says its CEO and COO are both stepping down as it tries to recover from financial issues.
The hospital said Chief Executive Officer Joe Riley and Chief Operating Officer Michael James are leaving their positions as of today to be replaced by Ronald Dreskin, partner with EisnerAmper’s Health Care Services Group, who will serve as interim CEO.
“Both Joe and Michael have served with dedication and expertise, and I thank them both for their contributions,” said retired Brig. Gen. Edward Crowell, chair of the Hospital’s Board of Directors.
“This announcement is part of a restructuring initiative aimed at transforming the hospital into a focused clinical organization and restoring the hospital to financial stability. A restructuring-focused interim CEO, working alongside the Chief Restructuring Officer, will provide strategic oversight and clarity of vision to quickly execute a turnaround while enabling other senior leaders to focus on the hospital’s day-to-day management.”
As Action 8 News has reported, the hospital board appointed Allen Wilen, a partner with Eisner Advisory Group, as Chief Restructuring Officer to help accelerate a turnaround and lead the hospital through the restructuring process.
The hospital’s bond rating was lowered based on the missed payment. S&P Global says it lowered Jackson’s long-term rating to ‘D’ from ‘CC’ on The Medical Clinic Board of the City of Montgomery’s series 2015 bonds.
It says the payment was due on September 3. S&P Global says that it understands that Jackson’s liquidity is very thin and insufficient to meet the bondholders’ demand for full payment. It says $60 million is the outstanding interest payment for the series 2015 bonds.
Dreskin will lead the hospital’s day-to-day operations, and Wilen will continue to lead the hospital’s restructuring efforts and report directly to the hospital’s Board of Directors.
Crowell said that Jackson Hospital & Clinic will remain open.
The hospital said in a statement that the next possible steps in the restructuring include a divestment of non-core operations. These include transferring operations of the Hospice of Montgomery service to an organization that specializes in hospice care and selling the Jackson Wellness Center to a fitness-focused organization.
On its website, Jackson Hospital describes itself as being 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.
