MONTGOMERY — Dozens of Jackson Hospital employees joined leadership and city officials to lobby for the upcoming vote in the Montgomery City Council to guarantee a bond to prevent the hospital from permanently closing its doors.
The Montgomery City Council will vote on Friday on whether or not it will guarantee a $20.5 million loan to keep the hospital afloat while it continues its extensive restructuring.
Jackson Hospital has undertaken significant restructuring in recent months after several financial issues plagued the Montgomery institution.
Jackson defaulted on a $60 million bond payment in September 2024 and has missed multiple payments since. That same month, Allen Wilen, a partner with EisnerAmper Advisory Group, was appointed chief restructuring officer.
The financial woes led to CEO Joe Riley and COO Michael James resignations in November 2024. Ronald Dreskin, who was previously brought in to support the restructuring, has been operating as interim CEO since late last year.
Dreskin was first to speak at Thursday’s rally, advocating for the city to approve its request while lamenting the circumstances that led to the current financial straits.
“Jackson has served the county and city of Montgomery for over 80 years,” Dreskin said. “Like many hospitals in Alabama, Jackson has experienced significant financial pressures, increased costs, the pandemic, poor reimbursement rates, uninsured, the working poor, people who don't get insurance from their companies, not to mention the difficulty it is these days to be a stand-alone institution and meet the demands of running a hospital.”
“All of these factors have significantly negatively affected our financial position. and several months ago, unfortunately, forced us to default on the bonds that we had taken to make capital improvements around the hospital over previous years, putting us in an even more precarious situation," he added.
Dreskin said the hospital was able to secure a loan agreement with bondholders, but they required a party to guarantee the loan. He and other hospital officials attempted negotiations with the County, and the city decided to put it before the council for a vote.
“We are not asking for a dollar of funds from the city of Montgomery, but we are asking them to guarantee the financing that we require to get us through the next period of time,” Dreskin continued. “If we fail to meet these payments, if we fail to get the guarantee, it's going to be very difficult to get the cash we need to go forward. And that's why we're here today; that's why we've been meeting with our elected officials to explain to them the dire situation we are in. To plead with them to provide, not money, but a guarantee."
When asked why the county declined to take on the issue, Wilen seemed nonplussed by the lack of interest, hinting at possible unspecified political reasons.
“The county met with us on multiple occasions,” Wilen said. “We thought they would be interested in helping. And unfortunately, the county has decided that they don't have the ability to do so at this point in time. Whether there are some political issues related to that between the city and the county, I don't know."
Attendees seemed confident that the city would approve the measure, a feeling bolstered by the presence of Montgomery City Councilmembers Glen Pruitt, Jr., and Marche Johnson, who both spoke at the rally.
In addition to praising the work and workers at Jackson Hospital, speakers emphasized the perceived negative effects of allowing the hospital to close and put an unbearable load on the area’s already stretched-thin medical system.
“The downside is dire,” Dreskin continued. “The downside is we’re unable to provide for them, forcing the other hospitals in the community, who I have already indicated cannot handle the current load, to take the patients that would have come here into their systems. You would have a dire financial crisis that would affect every single person in our town.”
To connect with the author of this story or to comment, email craig.monger@1819news.com.
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