Montgomery City Council approves agreement to keep Jackson Hospital open

Jackson Hospital and Clinic has a shot at staying operational following an agreement with Jackson HealthCare and its parent company, Jackson Investment Group, that the Montgomery City Council approved during a meeting on Tuesday. 

The council unanimously approved an agreement to loan money to the hospital but did not set an amount. Jackson Hospital filed for Chapter 11 bankruptcy due to a lack of funding and had warned it may close after October. 

Mayor Steven Reed urged the council to support the facility.

“It’s a cornerstone of care for Montgomery and the surrounding counties,” he said. "And we know that it’s under severe financial strain.”

He said that city officials have met with Jackson Hospital representatives along with county and state leaders on what to do. 

“This potential closure would not only jeopardize access to critical medical services for those residents of Montgomery but for those throughout the River Region and beyond,” he said. “It would also [destabilize] broader healthcare infrastructure in those surrounding counties. That’s not something we can afford and that’s not something that we want to see happen.” 

However, Reed stressed that the city would not “serve as a safety net” for institutions serving regional populations. 

“We will not bail out private businesses and organizations because they have bad management,” he said. “We’re going to have to think about, from our perspective, how do we balance the needs of the city and our responsibility as a regional economic capital with those entities that are needed for everybody.” 

Reed pointed out that Montgomery cannot stand alone in supporting Jackson as it serves multiple regions and urged other governmental officials to help out. He reiterated that responsibility should be taken when loaning financial assistance, especially with help from others. 

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“I do not believe the city should back the hospital with any money without a firm, written commitment from the state of Alabama, Montgomery County and other regional partners,” he said. “We have to make sure that we aren’t going to be left holding the bag.” 

Reed added that Montgomery’s support has a downside in the form of revenue tools to fund essential services, which he said the city lacks, particularly in occupational tax. Without such a tax, the ability to help Jackon is “severely limited,” though he assured that the city continues to meet with other officials on finding a solution. 

“The big point here is we need enforceable agreements,” Reed stated. “We need to understand what the terms of engagement will be. We need transparency and we need the state to step up, not just with words but with resources and policy tools that empower cities to act.” 

He also pointed out that Montgomery lacks “dedicated streams for healthcare,” explaining that other cities use certain taxes that go into their general funds. 

“We don’t have that,” Reed said. “We are handcuffed and hamstrung to be able to do things that many of us would like to see done.” 

He proposed the following questions for the council to consider after approving an agreement: How will the city hold the hospital accountable? What will the rules be for management and oversight? How will the city decide which private organization are eligible for assistance? 

Rep. Shomari Figures told the council Jackson Hospital is key to the region.

“From what I’ve seen since I’ve been in Congress, from the conversations that I’ve had with people in the healthcare industry, hospitals, doctors, healthcare practitioners, Jackson Hospital is the single most important hospital in the state of Alabama because of the regional care it provides,” he said. 

The Montgomery City Council meets at 5 p.m. every first and third Tuesday of the month at City Hall on 103 North Perry Street. Recordings of meetings can be found on YouTube and Facebook. Agendas can be found here.