Jackson Hospital announced Monday that it had struck a new deal with Blue Cross and Blue Shield of Alabama.
The new four-year contract will allow the hospital to remain operational and unlocks millions in support from state and local governments.
“The agreement does not give us everything we felt we needed, but combined with the continued support of Blue Cross, Blue Shield of Alabama; Jackson Investment Group, the City of Montgomery, Montgomery County and the State of Alabama, it enables us to execute our strategic plan,” said Jackson Hospital CEO John Quinlivan. “We will enhance operational discipline, improve quality, expand services and add new services as we grow and innovate to better serve Montgomery and the Central Alabama region.”
The contract will take effect once the hospital exits bankruptcy proceedings; Quinlivan said the hospital filed paperwork Monday to begin that process.
The agreement paves the way for the release of the previously agreed upon $40 million from the State for capital expenses
“Only weeks away from its 80th anniversary, Jackson Hospital is reborn today stronger and ever more committed to delivering the most trusted medical care to the Capital City and River Region,” said Gov. Kay Ivey. “Jackson Hospital’s agreement to emerge from bankruptcy and keep its doors open to offer a wide range of care, including emergency services, is the direct result of a resolute partnership between state and local officials and hospital leadership.”
The plan is also backed by significant investment from the City of Montgomery and Montgomery County.
“Jackson Hospital’s new agreement with Blue Cross and Blue Shield of Alabama is a major step toward long‑term stability for one of our community’s most critical healthcare institutions,” said Montgomery Mayor Steven Reed. “The City has committed $22.5 million; $15 million already provided last April and $7.5 million over the next three years; and Montgomery County has committed $17.5 million, including $10 million in immediate assistance.
“As Jackson Hospital works to finalize its restructuring plan and move toward emergence from bankruptcy, the City will remain steadfast in its support; because a strong healthcare system is foundational to a strong capital city.”
Reaching the agreement has been a long journey, as the hospital sought support for months and sued BCBS as part of its efforts to keep the doors open. At times the hospital faced the brink of closure.
Quinlivan thanked BCBS for staying at the negotiating table despite frustrations on both sides during the process and getting an agreement in place.
“For months, Blue Cross has worked with hospital leadership and other stakeholders to keep their doors open and provide patients access to the care they need,” BCBS leadership said in a statement Monday. “Throughout this process, our focus has remained on supporting our members and the community. We appreciate the efforts of all parties involved in reaching this outcome and look forward to continuing our partnership in support of the health and well-being of our customers, the River Region and Alabamians.”
