Montgomery, Ala., Mayor Steven Reed has called for amendments to the proposed funding resolution for struggling Jackson Hospital in Montgomery, with claims that the financial responsibility under Alabama law lies with counties.
“We are not rejecting support for Jackson Hospital; we are asking that the 60-40 funding split as currently proposed be recalculated to ensure fairness to the citizens of Montgomery and alignment with the County’s statutory responsibilities,” Mr. Reed said in a statement shared with Becker’s. “We are not walking away from the table; we are insisting on a transparent process that clearly defines how public dollars will be used and what services Jackson Hospital will provide in return — including trauma care, indigent care and other health services.”
The news comes after a federal bankruptcy judge approved an emergency loan on Oct. 14, extending the 344-bed hospital’s debtor-in-possession loan from $22 million to $35 million, which aims to keep the hospital operational through Dec. 25.
On Oct. 7, the city council voted unanimously to approve a nonbinding resolution for the hospital, which sought Chapter 11 protection in early February. While the resolution had no funding, it detailed future support which would require added steps.
Jackson Hospital declined Becker’s request for comment on Mr. Reed’s decision.
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