Jackson Hospital may have to close its doors by the end of the month if it can’t find another source of funding, officials told the Montgomery City Council Tuesday evening.
The hospital is in the process of filing for Chapter 11 bankruptcy, but hospital officials told the council that there simply won’t be enough funds to continue operating unless the city backs a loan for the hospital.
The hospital currently has about $2 million in its bank account.
“We’re adding another three to four million to the current loan,” an investor explained. “That will get the hospital through October, giving administrators time to sit down with city, county, and state leaders to work out a plan. But if there’s not a commitment by then, there is no alternative other than to close. That’s not a threat. We’re just out of money.”
Hospital officials are asking the city to help them secure a $20 million loan to cover payroll and operating expenses as it attempts to restructure its debt under the bankruptcy proceedings.
“We have to have this hospital going forward,” Councilmember Andrew Szymanski said. “It’s the only hospital in the area that’s taking in injured care, and that’s a really important thing to have in the city of Montgomery.”
But Szymanski also noted the potential risk to taxpayers in making a move to financially back the hospital.
The council did not take any action Tuesday night on the request and the hospital’s future remains in limbo.
