Montgomery, Ala.-based Jackson Hospital has filed to exit bankruptcy and signed a four-year deal with Blue Cross Blue Shield of Alabama, John Quinlivan, CEO of Jackson Hospital, said during an Aug. 17 news conference.
The BCBS agreement will become active once the exit is complete.
“The agreement does not give us everything we felt we needed, but combined with the continued support of Blue Cross Blue Shield of Alabama, Jackson Investment Group, the City of Montgomery, Montgomery County and the State of Alabama, it enables us to execute our strategic plan,” Mr. Quinlivan said. “We will enhance operational discipline, improve quality, expand services and add new services as we grow and innovate to better serve Montgomery and the Central Alabama region.”
Jackson Hospital sought bankruptcy protection in February 2025 and has been in continuous discussions with BCBS Alabama for months over reimbursement rates.
The hospital reached a verbal agreement with BCBS Alabama on July 3 to remain open, after it delayed a July 1 planned closure due to ongoing talks with BCBS Alabama, city, county and state leaders.
“I went home some nights convinced that we were going to have to close this hospital, but we didn’t walk away,” Mr. Quinlivan said. “I think it was that everybody stayed with it. It took a long time. Nobody gave up, and here we are.”
A spokesperson for BCBS Alabama said in an Aug. 17 statement shared with Becker’s that it is “pleased” the hospital will remain open.
“For months, Blue Cross has worked with hospital leadership and other stakeholders to keep their doors open and provide patients access to the care they need,” the statement said. “Throughout this process, our focus has remained on supporting our members and the community.”
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