Delaware dark money group reveals ties to Jackson Hospital in new ad buy, total TV spend now tops $475,000 as Alabama taxpayer bailout stacks up

Jackson Hospital
(Jackson Hospital/Facebook, FreePik, YHN)

A Delaware-registered dark money group that sprang to life immediately following a coordinated legal assault on Blue Cross and Blue Shield of Alabama is now running a new television spot that makes its true purpose very clear.

After weeks of flooding the Montgomery media market with attack ads aimed at Blue Cross, Alabama Patients First has now launched a new message built around Jackson Hospital, a Montgomery-area hospital that declared for bankruptcy in 2024 after years of financial bleed, which might now have to close its doors unless certain conditions are reached in its federal Chapter 11 bankruptcy case.

“Jackson Hospital has been a staple in Montgomery for decades, but today they’re fighting to stay alive,” the ad says.

“The problem Jackson says Blue Cross, Blue Shield of Alabama, is to blame. Blue Cross pays Jackson hospital significantly less than neighboring hospitals for the same life saving care, ripping off Jackson hospital to the tune of millions in revenue they need to survive Blue Cross of Alabama’s making a killing while Jackson hospital dies. Tell Blue Cross pay equal rates save Jackson Hospital.”

Along with the new video, the group is spending big money to get it in front of Alabamians.

According to a breakdown of their television advertising buy in Alabama media markets, the group has spent a total of $475,535 across all regions — with the vast majority, $373,535 — being invested into the Montgomery-area TV market in a single month alone.

College Football Playoffs and NFL Wild Card Weekend are airing in the coming days, and the Alabama Legislature returns to Montgomery on Tuesday.

Last week, Alabama Patients First purchased another $50,000 in Montgomery-area TV placements and an additional $25,000 this week.

In its latest video, the dark money group overtly references Jackson Hospital, whereas in its first, no reference to Jackson is made.

As Yellowhammer News uncovered, Alabama Patients First was formed in Delaware on December 11, and immediately rolled out a six-week TV and digital attack campaign against BCBS.

A spokesperson for Blue Cross and Blue Shield of Alabama called the blitz “an improper attempt” by Jackson Hospital’s “investor-lender to improperly influence litigation.”

That litigation is real — and bizarre.

In December, Jackson filed a complaint inside its bankruptcy case against BCBS, then asked U.S. Bankruptcy Judge Christopher Hawkins for emergency injunctive relief to force Blue Cross to immediately pay Jackson the same reimbursement rates it pays Baptist Medical Center in Montgomery.

Jackson’s motion claims, without proof, that BCBS pays Jackson roughly 30-40% less than Baptist, another hospital in Montgomery, for comparable services.

In doing so, Jackson asked the judge to compel parity in rates, which is a highly unusual emergency demand to make in bankruptcy case.

The court scheduled Jackson’s emergency fight over government grant funds and its request for an injunction against BCBS back-to-back on December 30.

However, that hearing bought Jackson additional time.

First, the court gave Jackson more runway to try to stitch together a confirmable plan. Judge Hawkins extended Jackson’s period to file a Chapter 11 plan through January 30, 2026, and to solicit votes through April 1, 2026.

Then, on January 5, the court granted Jackson authority to “receive, segregate, restrict and utilize” governmental grant funds. But with a major catch.

None of those grant funds may be used to repay or otherwise address any indebtedness incurred prior to November 1, 2025, or to pay or settle claims arising from that older debt.

Effectively, even if taxpayer money continues to come in the door, the court has now drawn a hard line against using it as a backdoor bailout.

While Jackson fights BCBS in court, and Alabama Patients First covertly influences elected officials and the public, taxpayer money is still piling up around the hospital’s ongoing operations.

Yesterday, the Montgomery County Commission approved an additional $7.5 million in rescue funds for Jackson as the bankruptcy case drags on. That adds to the $10 million previously approved by the County last year, on top of $22.5 million committed by the Montgomery City Council.

Jackson’s debtor-in-possession (DIP) financing is tied to Jackson Investment Group — an Atlanta-based firm and the parent of healthcare staffing company Jackson Healthcare — and that financing totals up to $35 million with a 14% interest rate that can escalate to 19% under certain conditions, plus fees that run into seven figures.

In December, Jackson Hospital, Jackson Investment Group, and Jackson Healthcare did not respond to requests from Yellowhammer News about their role in Alabama Patients First.

But as the lender, they sit at the front of the repayment line in Chapter 11, and every additional week the hospital stays open, the leverage and value of their financing position increases.

Grayson Everett is the editor in chief of Yellowhammer News. You can follow him on X @Grayson270.