ACTION 8 UPDATE: Jackson Hospital delays announcement on its future
MONTGOMERY, Ala. (WAKA) – Officials at Montgomery’s bankrupt Jackson Hospital have delayed a scheduled announcement on whether it will close its doors.
An announcement had been scheduled for 2PM today. Late this morning, Action 8 News learned that the announcement has been delayed indefinitely.
The reason is that the hospital’s Board of Directors became aware of new developments that happened late last night that need to be examined. We do not know what those developments are.
Jackson Hospital has previously said that Thursday, June 25, was the deadline day for new funding to be secured or else a process to close the hospital could begin. Today’s announcement was expected to inform the city, patients and employees of that decision.
Earlier this week, Jackson Hospital CEO John Quinlivan sent this email to the hospital’s estimated 1,800 employees:
“We will communicate next steps regarding whether Jackson Hospital will proceed with closure planning or move forward under the hospital’s approved plan to emerge from bankruptcy. I continue praying for the latter! We appreciate your hard work, dedication, and professionalism during this uncertain time. Please continue to keep Jackson Hospital, our employees, our patients, and our community in your thoughts and prayers.”
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.
Quinlivan said so far, Jackson Hospital has only secured about $61 million of the $293 million the hospital has said it needs to fully recover. The money is coming from various government and private sources, including a limited financial pledge from the State of Alabama and $35 million from Georgia billionaire Rick Jackson, who is that state’s Republican nominee for governor.
The hospital had wanted a bankruptcy judge to force Blue Cross Blue Shield of Alabama to pay it a higher insurance reimbursement rate as a way to bring in more money. Last week, the judge turned down that effort.
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.
Stay with Action 8 News for updates.
