MONTGOMERY, Ala. (WSFA) – Jackson Hospital is issuing a statement days after postponing a scheduled news conference to discuss its future and possible closure amid ongoing bankruptcy proceedings.
On Monday, the hospital reiterated that it’s working “in good faith with Blue Cross and Blue Shield of Alabama,” along with city, county and state officials to “finalize the commitments necessary to support a sustainable path forward for the hospital.”
Hospital administrators told WSFA 12 News on Friday that it postponed its news conference “after the Board of Directors became aware of new developments late Thursday evening that require additional evaluation.” Specific details on those development have not been made public.
“Nothing changes operationally today,” said John Quinlivan, President and CEO of Jackson Hospital, said Monday. “Jackson Hospital remains open, our emergency department remains open, and our teams continue to care for patients.”
Court filings in early June showed that Jackson told a bankruptcy judge that it was in imminent danger of closure without a deal to increase reimbursement rates paid by Blue Cross Blue Shield of Alabama.
At that time, Jackson’s board met and set a firm June 25 deadline for reaching an agreement. If one was not met, the board was to authorize and direct the hospital’s management to begin closing procedures, Quinlivan said.
The hospital had sued the insurance company in December, claiming it was withholding crucial funds of about $1.4 million as the hospital continues fighting to remain operational. BCBS Alabama called the allegations “not accurate” and said “the hospital has twisted our gesture” of voluntarily providing it with a cash advance.
On June 17, the federal bankruptcy judge overseeing the case denied Jackson’s request for preliminary injunction in a 14-page ruling, meaning the court would not force BCBS Alabama pay Jackson higher and/or matching reimbursement rates with nearby Baptist Medical Center South.
Quinlivan said Monday that the hospital remains “encouraged by the continued engagement from its partners,” but said “there are still important pieces that must be finalized.”
“Our focus remains on protecting access to local healthcare for the River Region and ensuring any path forward is financially sustainable,” he added. “We will share additional updates as soon as we are able.”
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