Alabama has transferred $40 million in previously promised funds to Montgomery, Ala.-based Jackson Hospital, according to a report from the Alabama Political Reporter. The newly sent funds follow the hospital’s emergence from bankruptcy Sept. 14.
The funds are intended for necessary capital expenses and deliver on the state’s funding commitments to support the hospital’s future. Alabama Gov. Kay Ivey first announced the funding commitment in a Feb. 24 news release.
“The sustainability of Jackson Hospital and the viability of a strong healthcare system with Baptist Health remains critical for our capital city and the River Region,” Ms. Ivey said in a statement to the Reporter. “With Jackson Hospital officially emerging from bankruptcy, the state has transmitted the $40 million we promised for necessary capital expenses.”
Jackson Hospital approved a four-year agreement with Blue Cross Blue Shield of Alabama Aug. 17, which was set to begin after the hospital exited bankruptcy. The agreement came after months of discussions over reimbursement rates.
The Ivey administration and the incoming Tuberville administration plan to continue working with stakeholders as discussions of the hospital’s future proceed.
