Judge denies Jackson Hospital’s request for a preliminary injunction
MONTGOMERY, Ala. (WAKA) – In a 14-page ruling, a federal bankruptcy judge has denied Jackson Hospital’s request for a preliminary injunction.
The ruling means that the federal courts will not enforce Blue Cross Blue Shield of Alabama to pay the same rates to the hospital that Baptist Medical Center South is currently getting.
Judge Christopher Hawkins said in his ruling that the hospital has not provided enough evidence to prove that the contract should be changed.
“The Hospital has not established that it will suffer irreparable injury if the Court does not unilaterally increase reimbursement rates under the Provider Agreements. To the contrary, the evidence conclusively belies the Hospital’s allegation in the Motion that it cannot emerge from bankruptcy, will lose funding from the State of Alabama, and will be forced to close absent this Court’s immediate issuance of an affirmative injunction.”
Blue Cross Blue Shield issued this statement to Action 8 News late Wednesday night after the ruling was made:
“Blue Cross and Blue Shield of Alabama appreciates the court’s ruling. This decision supports our responsibility to protect our customers – the nearly two million members here in Alabama who depend on us for access to high‑quality, affordable healthcare. That said, we very much want Jackson Hospital to remain open and continue providing care to patients, and we remain hopeful that a solution can be found.”
The hospital’s board recently said it would announce the hospital’s closure on June 25 unless BCBS agrees to provide insurance reimbursements at a higher rate, comparable to what it gives Baptist Medical Center South.
Montgomery Mayor Steven Reed issued this statement:
“Today’s ruling does not change the fundamental reality that Jackson Hospital remains a critical healthcare provider for Montgomery and the River Region. The City of Montgomery has already demonstrated its commitment by making a substantial investment to help preserve access to care for our residents. While the legal proceedings will continue, our focus remains on ensuring that patients, healthcare workers, and families do not suffer the consequences of a disruption in healthcare services. My administration will continue working with stakeholders across the region to evaluate next steps and protect access to care for the people we serve.”
The hospital, which entered Chapter 11 bankruptcy protection in February 2025, says it is running out of money in order to continue operations. It has claimed that BCBS unfairly reimburses Baptist Medical Center South at a higher rate.
It has warned several times since last year that closure was possible. This is the first time that it has attached a date to that warning.
This is a developing story. Stay with Action 8 News for the very latest.
