The hospital failed to make a payment Sept. 3 after the bond trustee demanded full payment of all principal and interest in August. UMB Bank, the bond trustee, said Jackson hasn’t made rent or lease payments for five months, according to the report.
Moody’s Ratings and S&P Global downgraded the health system in recent months, with S&P issuing a “D” rating after the last missed payment. Jackson has not provided audited financial statements for the 2022 or 2023 years.
In June, Jackson’s board approved an affiliation with private equity firm HumanityCorp, but UMB became the bond trustee in July. Like many hospitals, Jackson has been affected by soaring labor costs and inflation, according to the report.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
