Particle.news
Download on the App Store

Montgomery Council Overrides Veto, Sets Conditional Jackson Hospital Funding

Court-approved financing buys time for the hospital's push for state and federal aid.

Overview

  • The City Council unanimously overrode Mayor Steven Reed’s veto and revised its measure to authorize up to $15 million for Jackson Hospital, removing language that guaranteed a 60–40 city–county split.
  • Earlier the same day, the Montgomery County Commission approved $10 million, with officials stressing the commitment depends on broader participation from other governments.
  • A federal bankruptcy judge extended Jackson Hospital’s Debtor-in-Possession loan from $22 million to $35 million, and Jackson Investment Group pledged an additional $15 million to extend operations through the holidays.
  • Hospital leaders say they still need roughly $25 million from the state and about $50 million in federal infrastructure funds to stabilize services and address deferred upgrades.
  • Jackson Hospital has been in Chapter 11 since February after missing payments on $60 million in bonds, and potential buyers have been deterred by about $100 million in deferred maintenance.