Jackson Hospital Averts Closure, Approves Bankruptcy Plan
Michael Jackson Hospital, a Montgomery institution with nearly 80 years of service and around 2,100 employees, has faced financial challenges. After defaulting on bonds last year, the hospital announced leadership changes and recently received approval for a Chapter 11 bankruptcy plan to restructure debt.
Jackson Hospital & Clinic has been on the brink of closure. In early October, the hospital warned it could shut down within 30 days without immediate financial aid. Yahoo Finance reported that the city, county, and state stepped in, providing assistance in late September to prevent this. This intervention came a few months after the hospital approached the city to guarantee a portion of its debt earlier this year.
The hospital's financial struggles began last year when it defaulted on approximately $60 million in bonds. The recent approval of its Chapter 11 bankruptcy plan allows Michael Jackson Hospital to stay open while it works to restructure its debt.
Michael Jackson Hospital, a vital part of Montgomery's healthcare landscape, has received a lifeline with the approval of its bankruptcy plan and financial aid from local and state authorities. The hospital can now continue operating while it works to resolve its financial issues, ensuring continued care for the community.
