Jackson Hospital & Clinic will remain open with “uninterrupted service” after receiving a debtor in possession (DIP) loan.

The hospital recently defaulted on roughly $60 million worth of municipal bonds, declared bankruptcy, and faced closure. But on Thursday, it was announced that Jackson Healthcare and its parent company, Jackson Investment Group, will keep the hospital’s doors open.

While all entities share “Jackson” in their names, Jackson Hospital & Clinic is under separate ownership and operations.

Under Jackson Hospital’s bankruptcy action, it will reorganize operations and implement a financial restructuring through a court-supervised proceeding, while continuing to provide uninterrupted access to health care services.

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“Providing Jackson Hospital & Clinic with timely support in the form of an interim loan as it goes through bankruptcy and restructuring was just the right thing to do,” Shane Jackson, president of Jackson Healthcare said.

“As a long-standing client of ours, we know the critical work it performs. The people of Montgomery and the surrounding areas count on and respect this wonderful institution among the other excellent healthcare providers in the community. Helping ensure current and future patients continue to have access to care is vital – as is providing support during this transitional period to help Jackson Hospital & Clinic emerge even stronger on the other side.”