Mayor Steven Reed's proposed Health Care Authority of Montgomery would oversee up to $40 million in state hospital bond money, with a seven-member city and county board.

Mayor Steven Reed wants Montgomery to set up a public health care authority. It would receive and oversee state money for hospital buildings and equipment, without the city taking over Jackson Hospital.

Reed presented the proposal for a Health Care Authority of Montgomery to the City Council on Tuesday, Oct. 6. The details here come from the city’s own account of the presentation. No vote has been announced.

“This is just the very start of this conversation. It is not the conclusion of this conversation,” Reed told the council.

Why now

The city gave two reasons:

  • Jackson Hospital left Chapter 11 bankruptcy in September. Reed called that an important milestone but not the end of the community’s health care problems.
  • The state has authorized up to $40 million in bond proceeds for hospital infrastructure. Reed said Montgomery needs an accountable public body to receive, oversee and spend that capital money.

He said the authority would also protect taxpayers and the city’s General Fund from Jackson Hospital’s operating debt, pension obligations and malpractice liabilities.

“We don’t want to be in the hospital business,” Reed said.

What the authority would look like

The framework Reed outlined includes:

  • independent annual audits of the authority by a certified public accountant
  • rules that public money goes to defined health care and capital priorities, not to unrestricted hospital operations
  • the power to take public money back if performance, reporting or access requirements are not met
  • continued financial reporting rules for any remaining city commitments to Jackson Hospital
  • a seven-member voting board
Board seat Appointed by
3 members City of Montgomery
3 members Montgomery County
1 health care finance expert City and county jointly
Advisory, no vote ADECA and the Alabama Department of Public Health

ADECA is the Alabama Department of Economic and Community Affairs.

Beyond one hospital

Reed said the authority is meant to protect access to care across the city, not only at Jackson Hospital. The city said Jackson serves patients throughout Central Alabama, and that the rest of Montgomery’s health care system could not absorb a large cut in local hospital services.

“We know that we need a standing, accountable public structure that can help protect healthcare access for the long term, not just at Jackson Hospital, but at Baptist, as well as other medical providers in our community,” Reed said.

He pointed to health care authorities elsewhere in Alabama as models Montgomery could study.

What happens next

Montgomery County officials have been briefed, the city said. Talks with the City Council, the county, the health care community and other partners will continue before any decision on the authority is final.

What it means for you

  • Nothing changes yet at Jackson Hospital or Baptist. This is a proposal, and the city says it is not a purchase or takeover of Jackson Hospital.
  • Your elected officials will decide it. The city and the county would each appoint board members, so both the City Council and the Montgomery County Commission have a say. Our who to call at City Hall guide lists how to reach your council member.

We will report when the authority comes up for a vote.