Alabama Gov. Kay Ivey has committed $40 million for capital expenses atJackson Hospital in Montgomery, Ala., to be issued once the hospital exits bankruptcy.
“Right now in Montgomery, our healthcare system faces its own unique struggles with the current situation at Jackson Hospital,” Ms. Ivey said in a Feb. 24 news release. “Losing a hospital in one of our large metropolitan areas would be devastating not just for the Montgomery community, but for the many residents in the surrounding counties it serves.”
Jackson Hospital sought Chapter 11 protection in February 2025 and has since faced uncertainty around additional local funding and court-imposed deadlines to outline its path forward. The hospital is also involved in a reimbursement dispute with BCBS Alabama, and has alleged the insurer is withholding $1.4 million in patient payments.
The committed funds came after Ms. Ivey took part in the Amendment 666 Bond Commission meeting, where members voted to approve the future bond issuance in support of the hospital.
“For a year now, I have been engaged on the issues facing Jackson Hospital due to their previous mismanagement,” Ms. Ivey said. “There is new hospital leadership in place now, which I have confidence in, and I challenged local elected leaders to come forward with their own funding commitments.”
Jackson Hospital thanked Ms. Ivey for the funding commitment and confirmed the facility remains open and fully operational in a Feb. 25 news release shared with Becker’s. The hospital also received financial grants from the city and county of Montgomery and a line of credit from Jackson Investment Group.
“We cannot save this hospital without fair reimbursement from BCBS,” John Quinlivan, CEO of Jackson Hospital, said in the release. “All we ask is that Blue Cross Blue Shield pay Jackson Hospital what they pay other local hospitals.”
BCBS denied the allegation that it is withholding $1.4 million in patient reimbursement in a Feb. 25 statement shared with Becker’s.
“It is regrettable that the hospital has twisted our gesture of voluntarily providing it with an over $1.5 million cash advance — one of the actions Blue Cross undertook to help Jackson Hospital navigate its financial difficulties,” the statement said.
