Jackson Hospital will remain open for now after state and local officials, hospital leaders, Blue Cross and Blue Shield of Alabama and other stakeholders reached a tentative agreement aimed at keeping the financially troubled Montgomery hospital operating while efforts continue to find a long-term solution.
Sources familiar with the negotiations told APR that Gov. Kay Ivey’s office, Montgomery Mayor Steven Reed, the Montgomery County Commission and others have been working in recent days to prevent the hospital from closing as it struggles through an ongoing financial crisis.
Hospital employees have been informed that Jackson Hospital will remain open while officials continue working behind the scenes on a broader plan to stabilize the hospital’s future.
The agreement does not appear to fully resolve Jackson Hospital’s financial problems, and it remains unclear how long the current arrangement will keep the hospital operating. But for now, the immediate threat of closure has been delayed as negotiations continue.
Blue Cross and Blue Shield of Alabama said it is pleased Jackson Hospital will remain open and continue serving Montgomery and the River Region.
“Blue Cross has worked with hospital leadership and other stakeholders to keep their doors open and provide patients access to the care they need,” the company said in a statement. “Throughout this process, our focus has remained on supporting our members and the community.”
Sources familiar with the negotiations told APR that one possible long-term solution could resemble the model used in Birmingham with Cooper Green Mercy Health Services, where a financially challenged public hospital was restructured to continue serving the community in a different form.
Cooper Green, once an inpatient hospital owned by Jefferson County, transitioned from inpatient care to outpatient services in 2012. In 2024, Cooper Green opened a new ambulatory care facility in Birmingham designed to provide outpatient services, including primary care, specialty clinics, urgent care, pharmacy, imaging, laboratory services and therapy.
Sources cautioned that no final structure has been approved for Jackson Hospital and that discussions remain ongoing. But the Cooper Green example is being discussed as one possible framework for preserving access to care in Montgomery and the River Region, even if the hospital’s long-term operations eventually look different from its current form.
Jackson Hospital is one of Montgomery’s major health care providers and serves patients throughout the River Region. Its future has become a pressing concern for state and local leaders because of the hospital’s role in emergency care, regional health care access and employment.
Ivey has previously said it is “imperative” that Jackson Hospital remain open. City and county officials have also been involved in efforts to preserve health care access in the region.
The latest development marks a temporary reprieve for the hospital, its employees, patients and the broader Montgomery community.
Officials have not released the full terms of the tentative agreement. Those involved in the discussions say work is continuing to address the hospital’s immediate needs while also seeking a sustainable long-term plan.
While the agreement keeps the doors open for now, officials continue to caution that Jackson Hospital’s financial challenges remain serious and that additional work will be required to secure its future.
