Representatives from Jackson Healthcare told the Montgomery City Council that Jackson Hospital is running out of cash and could be forced to close in October unless state, county and city officials commit significant funding and financing. Rick Jackson, chief executive of Jackson Healthcare, said the company "committed up to $25,000,000 to keep the hospital open back in February" and has extended that loan while negotiating a larger plan.
Jackson Healthcare outlined a multi‑phase turnaround aimed at rebuilding medical staff, modernizing infrastructure and expanding specialty services, with an estimated infrastructure need the presenters described as more than $100,000,000. John Quinlivan, who led due diligence for the team, said the hospital’s electronic health record is outdated and replacement "can cost as much as $30,000,000." The team said the hospital currently has about $22,000,000 in cash and is losing roughly $5,000,000 per month.
The presentation described two financing alternatives the private group has proposed to public partners: a package that includes a $50,000,000 grant plus $100,000,000 in infrastructure financing; or a proposal that the state, county and city provide a $100,000,000 grant while Jackson Healthcare would increase its own loan from $25,000,000 to $50,000,000 for infrastructure support. Rick Jackson said the company "would provide the additional amount of money on a short term basis, to make sure that the plan was approved and that their money was put in, in accordance with the plan." He warned, "If there's not a commitment, then there is no alternative to this hospital other than to close."
Presenters said the turnaround would require professionalized management, recruitment of physicians, reopening and renovating closed units (about $3–4 million per unit as estimated in the presentation), and replacement of the EHR to meet upcoming federal interoperability rules. The team plans to file a reorganization plan in bankruptcy court if they assume management as projected in November and said grant proceeds would be placed in escrow and disbursed only with the bankruptcy judge's approval.
On potential ongoing support, John Quinlivan outlined options in Medicaid funding, including the state’s Quality Care Assessment (QCA) program that can be used to draw federal matching dollars for projects targeted at Medicare/Medicaid populations; behavioral health and oncology were cited as service lines that could be supported by such funding. The presenters also said discussions are ongoing with Blue Cross Blue Shield about reimbursement parity so the hospital would be paid comparable rates to other regional hospitals.
Council members asked clarifying questions but did not take formal action during the presentation. Council member Ms. Mushy asked about the 30‑day extension and the status of discussions on incremental Medicaid support; Rick Jackson said the private loan increase and public commitments are being negotiated to sustain operations through October. Council President said the city will coordinate with the county and state on the next steps.
No formal vote or commitment by the city was made during the meeting; presenters asked public officials to secure grant or financing commitments so the team can complete a bankruptcy reorganization plan and proceed with the turnaround.