Montgomery County Commission Chairman Doug Singleton has update on Jackson Hospital
Action 8 News has spoken with Montgomery County Commission Chairman Doug Singleton about the future of financially troubled Jackson Hospital.
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.
Singleton credits Rick Jackson of Georgia-based Jackson Healthcare for working through the hospital’s financial problems and providing a $25 million loan last year to keep the hospital open. He says Rick Jackson has also created an 80-page plan to get the hospital back on its feet.
The next step is a meeting with all of the key officials, scheduled for November 5.
“We’ll know a lot more on November 5 after we meet that date, but there’s still a lot of work that has to be done, a lot of partnerships that have to be solidified,” Singleton told Action 8 News. “I’m encouraged that the city and county have worked together. I’m encouraged that the state is willing to help. I know our federal partners, Senator Britt and Senator Tuberville , are in support of Jackson Hospital.
“Hopefully our providers, Blue Cross Blue Shield and United Healthcare, will be willing to step up and help us also to keep the hospital up and operating.”
Overall, Singleton says the hospital needs $150 million, but can’t keep losing money.
As Action 8 News has reported, a federal bankruptcy judge in Montgomery has approved a loan that officials say will help keep the hospital open through the holiday season. The hospital’s Debtor-In-Possession (DIP) loan was extended from $22 million to $35 million.
Jackson Investment Group announced that it will add an additional $15 million on top of the court approved loan.
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.
