A MAJOR hospital could be just weeks away from closing its doors for good after more than 80 years of service.
Jackson Hospital in Montgomery, Alabama has told a bankruptcy court it is running out of time — and the facility could be shuttered by July if Blue Cross Blue Shield of Alabama doesn’t increase its reimbursement rate.
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Jackson Hospital in Montgomery, Alabama could close its doors for good by July after more than 80 years of service amid a bitter dispute with insurer Blue Cross Blue Shield of Alabama Credit: Unknown
Jackson Hospital CEO John Quinlivan says he is growing less optimistic the Montgomery, Alabama facility can avoid closure Credit: Unknown
CEO John Quinlivan even took the insurer to court over the dispute in late 2025.
But the insurer pushed back, saying it has already been more than fair.
“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,” they said in a statement to NBC affiliate WSFA.
“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.
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“Unfortunately, what Jackson Hospital seeks is neither affordable nor fair to our customers.”
They added: “Our members must be our priority, as we are committed to managing healthcare costs and maintaining access to high-quality care.”
The hospital has set a June 25 deadline to either strike a deal or persuade a bankruptcy judge to force BCBS of Alabama to raise its rates — or it will begin shutting down as soon as July 1.
Quinlivan isn’t holding his breath.
Jackson Hospital in Montgomery, Alabama is running out of time as a July closure deadline looms after more than 80 years of service Credit: Unknown
“I’ve become less optimistic, and truly the closer we get to June 25 the less likely I think it is, unfortunately,” Quinlivan told the outlet. “We’re keeping our fingers crossed.”
He added: “Basically, for every Blue Cross in-patient day, Baptist Hospital South is paid about $6,500. Jackson Hospital gets about $3,700.”
The suit accused Blue Cross Blue Shield of pulling the funds without court approval despite knowing the hospital was in bankruptcy proceedings.
“During the period Blue Cross Blue Shield allegedly withheld these funds, Jackson Hospital struggled to remain in operation,” a spokesperson for Jackson Hospital told the outlet in February.
“Jackson Hospital is requesting that the Court enforce the automatic stay, which is designed to protect debtors from creditors taking funds post-filing without court approval.”
Blue Cross Blue Shield of Alabama did not immediately respond to request for comment.