Montgomery, Ala.-based Jackson Hospital President and CEO John Quinlivan is hopeful that a solution can be reached to save the financially struggling facility as the clock ticks down to a potential July 1 closure.
Jackson Hospital, which sought bankruptcy protection in February, has been in talks with Blue Cross Blue Shield of Alabama for the last two weeks amid ongoing reimbursement rate disputes between the two parties. The hospital’s board will meet June 26 to evaluate any final offers from BCBS Alabama and make a final decision.
“I can’t tell you which way it’s going to go, but we are hopeful,” Mr. Quinlivan told Becker’s. “Both organizations want to keep this hospital open. We especially want to keep the hospital open, but we’ve got to have a financial model that makes that possible.”
A federal judge denied Jackson Hospital’s emergency request in mid-June to force BCBS Alabama to increase rates to match area hospital Baptist Medical Center South. In early June, Mr. Quinlivan warned of imminent closure unless BCBS raised reimbursement rates.
If Jackson Hospital’s board votes to shutter, Mr. Quinlivan said July 1 remains the anticipated closure date. The hospital, which has 1,869 employees, has also been developing a larger plan for around a year in case closure were to occur.
“We knew this was a possibility, we hoped it wouldn’t come, still hope it doesn’t come, but we’ve known it was a possibility, so we planned for it,” he said.
Mr. Quinlivan said the ideal situation would be an agreement on reimbursement rates that allows the hospital to remain operational, reestablish services, recruit doctors and organize around safety and quality.
As everything unfolds, Mr. Quinlivan said communication with employees and the community has been key.
“We’ve tried to be completely transparent throughout, especially with our staff and the community as well,” he said. “In being transparent, we acknowledge that closure is possible. Unfortunately, it’s a real possibility. We’re hopeful that we can avoid that.”
Becker’s has reached out to BCBS Alabama for comment and will update this story should more information become available.
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