MONTGOMERY, Ala. (WDNews) — Jackson Hospital will remain open after hospital leaders announced an agreement with Blue Cross and Blue Shield of Alabama and a plan to emerge from bankruptcy.
According to an update from Gov. Kay Ivey’s office Monday, the agreement clears the way for the release of $40 million previously approved by the state for capital expenses at the hospital.
State officials said the funding and bankruptcy agreement will allow Jackson Hospital to continue operating and providing medical care, including emergency services, to Montgomery and the surrounding River Region.
The announcement comes just weeks before Jackson Hospital marks its 80th anniversary.
“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,” Ivey said.
Ivey credited state and local officials, hospital leadership and Jackson Healthcare CEO Rick Jackson for working to keep the hospital open.
“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,” Ivey said.
“I want to personally thank Jackson Healthcare CEO Rick Jackson for his commitment to preserving this historic lifeline that so many depend upon every day. This agreement to save Jackson Hospital is monumental good news for Montgomery and all of Central Alabama!” Ivey said.