Alabama Hospital With $60 Million Muni Debt Files for Bankruptcy

One of Alabama’s largest hospitals filed for bankruptcy, falling victim to rising costs, a high proportion of uninsured patients and stagnant reimbursement rates.

The non-profit Jackson Hospital & Clinic, a 344-bed hospital in Montgomery, filed for Chapter 11 on Monday, listing assets and liabilities between $100 million and $500 million. The hospital, which employs more than 1,600, has $60 million in outstanding municipal debt.

JHC has secured a $24.5 million debtor-in-possession financing to continuing operating and hired SSG Capital to pursue a financing, sale or restructuring, according to a court filing. The hospital has closed outpatient pediatric services, ...