The fate of Montgomery’s Jackson Hospital is still up in the air after Montgomery Mayor Steven Reed vetoed a resolution passed by the city council last week extending a funding lifeline to the hospital. 

Jackson Hospital declared bankruptcy in February, after it defaulted on a $60 million loan. Despite the bankruptcy, the hospital was able to stay open and continue providing care. 

On Oct. 9, the Montgomery City Council unanimously approved a resolution entering into an agreement to provide financial assistance to the hospital, though the resolution did not provide a specific amount of funding the city would provide to the hospital. This vote came after hospital officials announced that the hospital would potentially have to close within the month if they did not receive financial assistance from the city, county and state.

However, Reed vetoed that resolution last week, saying that the county should bear the majority of the costs for funding the hospital under Alabama state law. Reed said he would like to see the county cover 60% of the hospital’s funding, amounting to $15 million of the needed $25 million in funding, while the city would cover the remaining 40%. 

The Montgomery County Commission is expected to vote next week on a funding resolution for Jackson Hospital. However, that resolution is only expected to $10 million in funding if passed. The county also claims that it is fulfilling its funding duties under state law, which mandates that counties cover the cost of indigent care, through their funding of the Montgomery County Health Facility. 

The hospital did manage to gain some financial ground last week, however. During a bankruptcy court hearing, a federal judge approved a $35 million loan for the hospital. This loan ensures that the hospital will not have to close within the month, with the hospital’s chief restructuring officer Allen Wilen saying the loan would help the hospital stay open until “somewhere between Thanksgiving and Christmas.”

The loan granted to Jackson Hospital is a debtor in possession, or DIP, loan. DIP loans are granted to companies that have filed for Chapter 11 bankruptcy, and allow these businesses to borrow capital to restructure and continue operations.

Jackson Hospital is just one of several at-risk hospitals in Alabama. This issue is especially pronounced in Alabama’s rural areas. According to the Center for Healthcare Quality and Payment Reform, there are 23 rural hospitals in Alabama at immediate risk of closing. Financial issues for the state’s hospitals were exacerbated by the COVID-19 pandemic, as well as rising operational costs. Additionally, Alabama not expanding its Medicaid coverage has put a strain on hospitals in poorer areas of the state, as they are unable to recoup as much of the costs from providing care to Medicaid and Medicare patients from what they charge to private insurers as hospitals in more wealthy areas are able to.

Alabama top stories in brief

Bessemer changes zoning law to allow data center project

• The Bessemer City Council last week voted to change their zoning laws to allow a massive data center project, known as Project Marvel, to move forward. The entire council voted in favor of the zoning changes, except one member who was absent.
• The project has drawn opposition from local residents, environmental groups and the NAACP due to concerns regarding pollution, including noise pollution, and increased strain on utilities from the center.
• The city council has also drawn criticism over signing non-disclosure agreements regarding the project. 

Leaking Birmingham-area dam only has $1 million in insurance

• Members of the Central Alabama Water Board learned last week that the Lake Purdy Dam, a century-old, leaking dam that provides drinking water to the Birmingham area, only has $1 million in liability insurance for emergencies and damages to the surrounding areas. 
• The dam has been classified as a “high hazard” by the U.S. Army Corps of Engineers because of the potential damage a collapse could cause to homes near the dam. The dam abuts several wealthy suburbs of Birmingham, with the average cost of a home in the flood path coming in at more than $500,000.
• The board does have full coverage for the dam itself, meaning that insurance would pay for the replacement of the dam. Board members say they are now seeking additional insurance coverage options, but are concerned that on-going construction at the dam makes it unattractive to potential insurers.

Rabies vaccines airdropped on Alabama

• The U.S. Department of Agriculture dropped bait packets containing an oral rabies vaccine from low-flying planes and helicopters on 14 central and north Alabama counties last week in an effort to reduce rabies in racoons.
• Vaccines were dropped on parts of Autauga, Blount, Calhoun, Cherokee, Chilton, Coosa, DeKalb, Etowah, Jackson, Jefferson, Marshall, St. Clair, Shelby and Talladega counties. Additionally, vaccine baits were also distributed through ground vehicles in the Birmingham metro area.
• The vaccine packets do not pose a risk for humans or animals. People are advised to leave packets alone, but, if you must handle one, wear gloves and place it where a raccoon could find it or dispose of it in the trash. 

More arrests made in Montgomery mass shooting, while downtown businesses remain on edge

• Four suspects have been arrested in connection with a mass shooting that killed two and injured dozens in downtown Montgomery on Oct. 6. 
• So far, police have arrested 21-year-old Kemontae Hood, 19-year-old Dantavious McGhee, 19-year-old Javorick Whiting and an unnamed juvenile in connection with the shooting.
• Downtown business owners raised concerns regarding the shooting during a forum hosted by Main Street Montgomery last week, telling city officials they fear the shooting will discourage customers from coming to the area.

Charter school aimed at LGBTQ students gets state contract renewal, but makes changes

• The Magic City Acceptance Academy, a public charter school in Homewood, received a five-year contract renewal from the Alabama Public Charter School Commission last week. However, this renewal comes after a period of intense restructuring for the school following a statewide ban on diversity, equity and inclusion initiatives in public schools that passed earlier this year.
• MCAA, which is open for students in sixth through 12th grades, was founded in 2011 with the goal of, facilitating “a community in which all learners are empowered to embrace education, achieve individual success, and take ownership of their future in a safe, LGBTQ-affirming learning environment,” according to their original mission statement.
• However, following a statewide ban on DEI initiatives in public schools, the school has removed references to LGBTQ students from its mission statement and has removed all rainbow iconography from its campus.
• The commission voted in favor of the school’s contract renewal 8-1.

Our articles you might have missed

• Our latest edition of The Longleaf Hiker continues our Alabama flora and fauna series by exploring Alabama’s fascinating collection of reptiles. Check out the article here and make sure to check back for our next article, which will focus on amphibians.

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