Jackson Hospital & Clinic, Inc. is a non-profit 344-bed community hospital founded in 1946, providing acute care, emergency services, and outpatient healthcare to the Montgomery, Alabama region, along with its affiliate JHC Pharmacy, LLC. The hospital employed approximately 2,100 workers and served as a critical safety-net provider with $45 million annually in unreimbursed care. Jackson Hospital filed for Chapter 11 protection on February 3, 2025 in the Middle District of Alabama (Case No. 25-30256) before Judge Christopher L. Hawkins after missing its September 3, 2024 payment on approximately $61 million in Series 2015 hospital revenue bonds (triggering an S&P downgrade to D), sustained operating losses ($36.7 million in 2022), exhaustion of $60 million in investments by June 2021, Alabama's refusal to expand Medicaid, and stagnant reimbursement rates. At filing, the hospital carried approximately $83 million in funded debt, including the Series 2015 bonds ($61M), ServisFirst Bank facilities ($12M revolving + $5M bridge), and a $5M bondholder bridge loan, along with trade debt exceeding $100 million. The Debtors obtained DIP financing from Jackson Investment Group, LLC, growing from $24.5 million initially to $35 million after three amendments. The hospital filed an adversary proceeding against Blue Cross Blue Shield of Alabama alleging discriminatory reimbursement practices (paying Jackson ~140% of Medicare vs. ~240% to competing Baptist Health), seeking over $250 million in damages. A Joint Plan of Reorganization was filed January 30, 2026, contingent on approximately $80 million in municipal grants and a $75 million exit facility.
