Jackson Hospital will close on June 25 unless Blue Cross and Blue Shield (BCBS) increases its reimbursement rate, according to Jackson Hospital president and CEO John Quinlivan.
Jackson Hospital filed a lawsuit in December against Blue Cross and Blue Shield over alleged “unfair reimbursement rates.” The State also recently approved $40 million in bonds for capital expenses at Jackson Hospital in addition to payments from the City of Montgomery and Montgomery County.
According to a letter obtained by WSFA from Quinlivan to Jackson Hospital employees, the hospital could close soon.
“Yesterday, our hospital board determined that we will announce the hospital’s closure on June 25 unless BCBS agrees before that date to reimburse us at a fair rate comparable to what it pays Baptist South. If agreement is not reached, the closure will be executed during the month of July,” Quinlivan said. “We are genuinely running out of money, and without action from BCBS, we will have no choice but to close.”
Sophie Martin, a BCBS spokeswoman, told 1819 News on Thursday that BCBS had been “more than fair” to Jackson.
“Blue Cross and Blue Shield of Alabama has been transparent and more than fair in our increased reimbursements and other support provided to Jackson Hospital, both before and during its bankruptcy,” Martin said. “We have tried to work with Jackson Hospital to help find a reasonable solution to its financial challenges, but we are less than 20% of its revenues. Unfortunately, what Jackson Hospital seeks is neither affordable nor fair to our customers. Our members must be our priority, as we are committed to managing healthcare costs and maintaining access to high-quality care.”
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