Just eight months after being rescued from bankruptcy, Jackson Hospital & Clinic once again faces a financial crossroads — this time with only weeks to secure a plan that could keep its doors open.
Hospital administrators told the Montgomery City Council this week that without new funding, operations could cease by the end of October. The hospital currently has about $2 million on hand, which is not enough to cover expenses beyond the next 30 days.
Leaders from Jackson Healthcare and its parent company, Jackson Investment Group, which have provided emergency support since the hospital filed for Chapter 11 bankruptcy earlier this year, say they’re extending an additional $3-4 million loan to sustain operations through October.
That short-term extension, they explained, is designed to give local and state leaders time to decide how to move forward.
Hospital officials are now seeking the city’s help in securing a $20 million loan, which would cover payroll and operating expenses as restructuring efforts continue.
City councilmembers are acknowledging the difficult position before them: balancing the need to preserve a vital health care provider against the obligation to safeguard taxpayer funds.
Councilmember Andrew Szymanski emphasized the hospital’s importance as one of Montgomery’s few facilities providing indigent care, but also noted that city leaders must ensure any commitment is financially responsible. He described the council’s task as a “delicate balance between compassion and caution.”
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The renewed crisis comes after a turbulent year for Jackson Hospital, which defaulted on roughly $60 million in municipal bonds before declaring bankruptcy in early 2025. That filing allowed the hospital to remain open under court supervision, with a mandate to reorganize and restructure its debt.
In February, Jackson Healthcare and Jackson Investment Group stepped in with a debtor-in-possession (DIP) loan, ensuring “uninterrupted service” while the hospital worked toward long-term financial stability.
At that time, Jackson Healthcare President Shane Jackson called the support “the right thing to do,” citing the hospital’s long-standing role in serving Montgomery and surrounding communities.
Despite those efforts, mounting costs and limited revenue have again placed Jackson Hospital in jeopardy, forcing leadership to seek additional support to maintain operations.
The Montgomery City Council has not yet taken action on the request. In the weeks ahead, councilmembers and the mayor’s office will review financial proposals and determine whether backing the loan is in the city’s best interest.
Until a decision is reached, the future of Jackson Hospital remains uncertain — and local leaders face mounting pressure to act before time, and funding, run out.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
