MONTGOMERY, Ala. (WSFA) – A federal bankruptcy judge denied Jackson Hospital’s request for preliminary injunction in a 14-page ruling late Wednesday night.
The denial means the court will not enforce Blue Cross and Blue Shield of Alabama to pay Jackson Hospital higher and/or matching reimbursement rates with nearby Baptist Medical Center South.
“The documentary evidence demonstrates that BCBSAL provided rational explanations for the difference between the rates for the Hospital and the rates for Baptist South,” the ruling by Judge Christopher Hawkins said. “Moreover, the documentary evidence shows that BCBSAL revisited the 2026 reimbursement rates and increased them by 10% over the previously agreed-upon rates, which directly controverts the Hospital’s argument that BCBSAL refused to negotiate in good faith.”
Jackson Hospital has indicated if a deal isn’t reached for higher rates, either through negotiations or a court order, by June 25, the hospital will close.
Since reaching a deal through a court order is no longer an option after the judge’s ruling, a deal must be reached between Jackson and BCBS of Alabama in the next week, according to the hospital’s projections, which the court disputes, or the hospital must find some other way to become profitable without higher rates.
The judge said Jackson Hospital didn’t have enough evidence to prove the contract should be changed.
“The Hospital has not established that it will suffer irreparable injury if the Court does not unilaterally increase reimbursement rates under the Provider Agreements. To the contrary, the evidence conclusively belies the Hospital’s allegation in the Motion that it cannot emerge from bankruptcy, will lose funding from the State of Alabama, and will be forced to close absent this Court’s immediate issuance of an affirmative injunction,” Hawkins said in his ruling.
BCBS of Alabama issued a statement Wednesday night following the judge’s ruling.
“Blue Cross and Blue Shield of Alabama appreciates the court’s ruling. This decision supports our responsibility to protect our customers – the nearly two million members here in Alabama who depend on us for access to high‑quality, affordable healthcare. That said, we very much want Jackson Hospital to remain open and continue providing care to patients, and we remain hopeful that a solution can be found.”
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