The hospital’s board said it would announce the hospital’s closure on June 25 unless BCBS agrees to provide insurance reimbursements at a higher rate, comparable to what it gives Baptist Medical Center South. If an agreement is not reached, the closure could happen sometime in July or possibly sooner, according to court documents obtained by Action 8 News. The hospital, which entered Chapter 11 bankruptcy protection in February 2025, says it is running out of money in order to continue operations. It has claimed that BCBS unfairly reimburses Baptist Medical Center South at a higher rate. It has warned several times since last year that closure was possible. This is the first time that it has attached a date to that warning.

According to court documents, Jackson Hospital alleges that during a recent status conference in court: “Counsel for Blue Cross Alabama implied that Jackson Hospital is “crying wolf” and, according to Blue Cross Alabama, there is no imminent risk Jackson Hospital will be forced to close its doors if the emergency injunctive relief Jackson Hospital seeks is not granted. Blue Cross Alabama’s argument is not only callous – completely dismissing and ignoring the devastating impact the closure of Jackson Hospital would have on the availability of necessary and life-saving healthcare services to the multitude of individuals who live in the numerous counties Jackson Hospital faithfully serves (the same individuals Blue Cross Alabama is supposed to serve) – the argument is also flat out wrong.” Jackson Hospital is asking that unless BCBS agrees to a higher reimbursement rate…