Montgomery, Ala.-based Jackson Hospital exited bankruptcy Sept. 14, its president and CEO John Quinlivan confirmed to Becker’s.
The hospital’s emergence from bankruptcy comes about one month after it signed a four-year agreement with Blue Cross Blue Shield of Alabama. The BCBS agreement was set to become active once the exit was complete.
Jackson Hospital filed for bankruptcy protection in February 2025 and had been in continuous discussions with BCBS Alabama for months over reimbursement rates.
In its initial bankruptcy filing, the 344-bed nonprofit hospital said it has dealt with “significant financial pressures” in recent years, including a challenging payer mix, stagnant reimbursement rates, COVID-19 and increased labor costs. The hospital said it also faced significant financial losses due to the absence of Medicaid expansion in Alabama and its obligation to provide care for uninsured patients.
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 the company, as well as city, county and state leaders. On Aug. 17, the hospital’s board of directors unanimously approved the agreement with the payer and a plan to emerge from bankruptcy.
“We are grateful to our staff who’ve stayed with us through a very trying period and to the members of this community who’ve so strongly supported us,” Mr. Quinlivan told Becker’s Sept. 15. “Our priorities now are to establish disciplined operations, enhance efficiency and improve quality as we expand our capacity and add new capabilities to better serve Montgomery and the Alabama River Region.”
At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 2–3 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.
