Jackson Hospital to receive additional funding from Montgomery County Commission
The Montgomery County Commission has voted yes to providing additional funding for Jackson Hospital, which declared bankruptcy last year.
The county commission approved an additional $7.5 million for Jackson Hospital, reversing a vote taken just last month.
Commissioners have already approved $10 million to help keep Jackson Hospital open. That vote was taken last fall.
In November, hospital executives told state and local leaders they would need $293 million to remain operational. With the county’s latest contribution, total funding committed by the city, county and state now stands at $80 million.
“I appreciate the political will that the commission demonstrated in approving the additional $7.5 million, which, matched by the state, becomes $15 million. It’s really the final piece of the $80 million we needed from city, county and state government,” Jackson Hospital CEO John Quinlivan told Action 8 News.
He says the funding allows the hospital to move forward with a restructuring plan and present it to the bankruptcy court.
“We have reached a settlement with the bondholders that has been a major obstacle. That happened about two weeks ago, so really the path is clear,” Quinlivan says.
He says the hospital expects its restructuring plan to be approved, allowing Jackson Hospital to fully exit bankruptcy in the second quarter of 2026.
As Action 8 News has reported, the hospital filed for Chapter 11 bankruptcy protection in February of 2025. 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.
