Montgomery city and county leaders are moving forward with a proposal for a Health Care Authority of Montgomery that would channel up to $40 million in state‑authorized Amendment 666 capital bond funding into hospital infrastructure, while protecting the city’s general fund from hospital‑related debt, pension obligations and malpractice liabilities, WSFA reported.
Mayor Steven Reed emphasized that the authority would not place the city in the hospital business. “The city is not purchasing Jackson Hospital. The city is not taking over Jackson Hospital. The city is not entering into the hospital business,” Reed said, noting that Jackson Hospital recently emerged from Chapter 11 bankruptcy but still faces financial recovery challenges.
According to Reed, the authority would create a legal separation between municipal finances and hospital operations, require independent annual audits verified by CPAs, and restrict public funds to capital improvements rather than unrestricted operating expenses. The plan also includes clawback provisions that would allow the city to recapture funds if performance reporting or health‑care access requirements are not met.
Jackson Hospital serves as a regional provider, with nearly one in four patients coming from outside Montgomery County, Reed added. The authority’s framework could eventually involve surrounding counties and would affect other local health‑care entities, including Baptist South and Baptist East.
City Council did not vote on the authority at its Tuesday meeting. Instead, council members discussed next steps. Councilmember Calhoun said a committee will meet Wednesday at 4 p.m. in the old council chambers to consider appointments and to consult with other Alabama municipalities that already operate health‑care authorities. He estimated start‑up costs at about $250,000, split between the city and county, to hire roughly six staff members whose duties would include pursuing grants, overseeing hospital finances, and safeguarding taxpayer money.
Public comment highlighted both support and concern. A Montgomery resident urged the council to incorporate mental‑health services, noting that many families from surrounding areas rely on the city’s hospitals and that current mental‑health stays are often too brief for medication to become therapeutic. Another resident, David Cook, opposed the authority, arguing that taxpayers should not be asked to support a “failing business” and suggesting that hospitals unable to survive independently should be replaced.
While the authority is still under review, officials say the groundwork is largely complete and that the next council meeting will determine whether to present the proposal for formal approval.
What’s next: The committee meeting on Wednesday at 4 p.m. will discuss board appointments and seek input from other municipalities. City Council is expected to consider a formal presentation of the Health Care Authority at its upcoming session, with a decision anticipated in the next few weeks.
Sources: wsfa.com
