MONTGOMERY, Ala. — Jackson Hospital CEO John Quinlivan is publicly calling on Blue Cross and Blue Shield of Alabama to increase reimbursement rates, arguing that the insurer’s refusal to do so could lead to the hospital’s closure within weeks.
In an open letter, Quinlivan said Jackson Hospital has spent nearly a year pursuing options to remain operational, including seeking buyers, implementing restructuring efforts and securing private financial support.
According to Quinlivan, Jackson Investment Group provided an initial $25 million loan to keep the hospital operating while leadership explored a sale and other recovery options. He said the group’s commitment later increased to $35 million as discussions continued with government officials and community leaders.
Quinlivan said hospital representatives contacted hundreds of potential operators and conducted extensive due diligence before concluding that no buyer was willing to make the investment necessary to acquire and stabilize the facility.
Following discussions with state officials, hospital leadership developed a recovery plan that includes management changes, cost reductions, physician recruitment efforts, service expansion, public support and private financing.
However, Quinlivan said the plan depends on what he described as fair reimbursement rates from Blue Cross and Blue Shield of Alabama.
According to Quinlivan, Jackson Hospital is seeking reimbursement rates comparable to those paid by Blue Cross to Baptist Medical Center South, located a few miles away. He contends that matching those rates would provide the financial stability needed to support the hospital’s turnaround efforts.
Quinlivan said Blue Cross has declined requests for higher reimbursement rates despite appeals from hospital officials and government leaders.
The CEO argued that commercial insurance payments are critical to hospital operations because Medicare, Medicaid and uninsured patient care often do not fully cover healthcare costs. He said commercial reimbursements help fund staffing, facilities, equipment and technology investments.
Quinlivan warned that closure of Jackson Hospital would have significant consequences for healthcare access in Montgomery, including the displacement of more than 71,000 patients, increased pressure on emergency departments at neighboring hospitals, longer ambulance response times and disruptions to care for surgical, maternity and Medicaid patients.
He also cited a University of Alabama report that projected substantial economic impacts for the region if the hospital were to close.
Blue Cross and Blue Shield of Alabama was not quoted in the statement and had not publicly responded to Quinlivan’s claims in the information provided.
Jackson Hospital’s future remains uncertain as discussions continue regarding its financial recovery and long-term viability.
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