Jackson Healthcare

Company Profile

Jackson Hospital is a fully accredited, not-for-profit, 344-bed acute care hospital in Montgomery, Alabama. Established in 1946, the health system provides comprehensive medical services, including cardiology, oncology, neurosciences, orthopedics, and women’s and children’s care, along with 24/7 emergency services. As one of the largest hospitals in Alabama by licensed bed count, Jackson Hospital delivers vital care to a broad patient community. Jackson Hospital also maintains partnerships through joint ventures in imaging and surgery, reinforcing its commitment to advanced treatment and community health. The health system’s service area spans 16 counties across central Alabama and the River Region.

Situation

For 80 years, Jackson Hospital has served as a cornerstone of healthcare in central Alabama. Despite this history, the health system has historically faced rising costs and stagnant reimbursement rates. These pressures were compounded by breakdowns in revenue cycle management and financial controls starting in 2023, which rapidly deteriorated liquidity and ultimately culminated in a default on its bond obligations. After a proposed bondholder DIP financing stalled and liquidity pressure became urgent, Jackson Investment Group committed to providing a DIP facility, and the hospital filed for relief under Chapter 11 of the United States Bankruptcy Code in February 2025.

Solution

SSG was retained in January 2025, shortly before the bankruptcy filing, to explore a range of strategic alternatives. Immediately after engagement, SSG launched a comprehensive sale process targeting a broad universe of strategic and financial acquirers and investors, generating multiple bids for select assets, including going-concern proposals. Following extensive negotiations with investors, bidders, and key stakeholders, the Debtors determined that a Plan with Jackson Investment Group as the exit lender and Plan sponsor would maximize value for creditors and the community. In connection with the Plan, Jackson Hospital reached agreements with several counterparties, including its prepetition bondholders and Blue Cross and Blue Shield of Alabama, a major hospital payor. Jackson Hospital also secured approximately $80 million in funding commitments from the State of Alabama, Montgomery County, and the City of Montgomery. SSG’s extensive Chapter 11 transaction experience and ability to navigate complex, multi-stakeholder situations enabled Jackson Hospital to recapitalize its balance sheet with a change of control, emerge successfully from bankruptcy, and continue providing needed care to its community.