A resolution before the Montgomery County Commission that would have provided an additional $7.5 million in financial support to Jackson Hospital in Montgomery, Ala., failed Dec. 16 to garner a required majority to win approval.
The resolution failed on a 2-2 vote, with one commissioner abstaining. If approved, the measure would have unlocked $7.5 million in funds beginning in 2027, as well as $2.5 million per year over three years.
“It is important to note that this vote does not change the county’s prior commitment of $10 million for Jackson Hospital, which was previously approved in an ongoing effort to support access to healthcare in Montgomery County,” the commission said in a Dec. 18 statement shared with Becker’s.
In a separate statement shared with Becker’s, Montgomery Mayor Steven Reed said the decision not to provide the hospital with added funding was “deeply concerning.”
“Jackson Hospital is a vital healthcare provider for Montgomery and the River Region,” Mr. Reed said. “Failing to move forward with this support — particularly when it could have unlocked state matching dollars — puts access to care for our most vulnerable residents at risk.”
The news comes after a bankruptcy judge gave Jackson Hospital two options in early November: offer a restructuring plan to obtain financial recovery over the next five years or provide a closure plan by the end of 2025.
Jackson Hospital sought Chapter 11 protection in early February. The Montgomery County City Council then unanimously voted Oct. 7 to approve a nonbinding resolution for the 344-bed hospital that did not include funding details. In mid-October, a federal bankruptcy judge approved an emergency loan for the facility, which extended its debtor-in-possession loan from $22 million to $35 million to keep it open through late December.
Becker’s has reached out to Jackson Hospital for comment and will update this story should more information become available.
