‘Save Jackson Hospital’ billboard spotlights ‘alarming’ issues facing health care

A new billboard off Interstate 85 near Montgomery hopes to prompt state action to expand Medicaid, using the financial troubles of a local hospital in Alabama’s capital city.

The message, “Save Jackson Hospital. Expand Medicaid Now,” sponsored by Cover Alabama, points to issues plagueing small health care centers across the country — and says Medicaid expansion, so far rejected by state lawmakers, would help.

“This billboard is a stark reminder that without action, more hospitals will be forced to close, impacting families and economies across our state,” said Debbie Smith, Cover Alabama campaign director.

Cover Alabama, a nonpartisan alliance of consumer groups, businesses, health care providers and faith groups advocating for better health coverage, has teamed up on the messaging project with the American Cancer Society Cancer Action Network. The groups argue Medicaid expansion would strengthen health care access as well as the financial wellbeing of hospitals in the state.

Earlier this year, Montgomery’s Jackson Hospital defaulted on about $60 million worth of Medical Clinic Board of the City of Montgomery series 2015 bonds, which comprises 86% of the hospital’s long-term debt. The admission came with the S&P explained in a statement why it had lowered the hospital’s rating to “D” from “CC.”

Allen Wilen was named chief restructuring officer in September after the hospital defaulted on a bond payment.

But the groups involved in this campaign say the hospital’s woes are indicative of a larger problem.

According to a report from the Center for Healthcare Quality and Payment Reform, more than half of Alabama’s 52 rural hospitals are at risk of closure, including 23 facing an immediate threat. And it’s part of a larger problem nationwide: The report claims that rural hospitals are at risk of closing in almost every state.

In the majority of states, the report said, more than 25% of rural hospitals are at risk of closing, and in 10 states, more than half.

Alabama is one of 10 states that have not expanded Medicaid for people with low incomes. In recent years, a number of rural hospitals have been forced to close or scale back services. Officials with the Alabama Hospital Association have said that expanding Medicaid could boost the finances of rural hospitals and those that serve people with low incomes.

Retired Brig. Gen. Edward Crowell, the Jackson Hospital board chair, said Medicaid expansion “would be a game-changer, strengthening hospitals across the state and enabling us to continue serving those in need.”

Jane Adams, government relations director for the national organization in Alabama, called the billboard an “urgent call to action” and said Gov. Kay Ivey should take note.

Ivey has said on several occasions that she is concerned about how the state would pay for costs of expanded access in the long-term.

“We have seen Thomasville Hospital close in recent weeks and other hospitals are reducing services at an alarming rate,” Adams said. “This is no longer a problem in only rural areas.”