Jackson Healthcare, one of the nation’s providers of healthcare workforce services, announced that its parent company, Jackson Investment Group, will provide a debtor in possession loan to Jackson Hospital & Clinic, enabling it to remain open to serve the Montgomery community as it undergoes Chapter 11 bankruptcy and reorganization proceedings.
Jackson Hospital officials announced on Tuesday they’d filed for bankruptcy.
The Montgomery City Council declined to guarantee a loan for Jackson Hospital, which the institution requires to receive $20.5 million from its bondholders to keep its doors open.
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.
Jackson Hospital recently began diverting some cardiac patients to other hospitals.
Two top officials at the Montgomery-based Jackson Hospital & Clinic have stepped down as part of the hospital's financial restructuring.
Members of the Alabama Supreme Court ruled on Friday that Montgomery’s Jackson Hospital is immune from a 2020 wrongful death lawsuit brought by a patient’s family.
S&P Global Ratings lowered its long-term rating to D (default) from CC on The Medical Clinic Board of the City of Montgomery’s series 2015 bonds issued for Jackson Hospital and Clinic on Wednesday.