Blue Cross Defends Reimbursement Rates for Jackson Hospital

Insurer says it has worked to support the struggling hospital despite revenue growth.

Feb. 10, 2026 at 4:39pm

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Blue Cross and Blue Shield of Alabama has published an op-ed defending its reimbursement rates for Jackson Hospital, which is facing financial struggles. The insurer says it has repeatedly increased payments to the hospital and provided cash advances to help ensure its viability, despite the hospital seeing a steady increase in revenue over the past decade. Blue Cross argues that it must balance supporting providers with keeping costs affordable for its customers.

Why it matters

This dispute highlights the complex dynamics between insurers and hospitals, as both sides try to navigate rising healthcare costs and ensure access to care in local communities. The outcome could impact the future of Jackson Hospital and the healthcare landscape in the Montgomery area.

The details

In the op-ed, Dow Briggs, M.D., the Executive Vice President of Blue Cross and Blue Shield of Alabama, states that Blue Cross' reimbursement is not the reason for Jackson Hospital's financial struggles. Briggs notes that Blue Cross customers represent less than 25% of Jackson's patient volume, so the idea that the hospital's issues rest on that small portion of its business is "not realistic." In fact, Briggs says Jackson's revenue increased by over 60% from 2015 to 2023, yet the hospital still recorded an $8.4 million net loss in 2022. Briggs argues that Blue Cross has worked to support Jackson, increasing its reimbursement beyond standard rates and providing cash advances to help ensure the hospital's viability. However, Briggs says Blue Cross must also balance supporting providers with keeping costs affordable for its customers, 90 cents of whose premiums go towards patient care - one of the highest rates in the country.

  • In September 2025, Jackson's interim management team told Blue Cross that the hospital's annual revenue increased from roughly $199 million in 2015 to over $321 million in 2023 - a more than 60% increase.
  • In 2022, the most recent year of available public data, Jackson Hospital recorded a net loss of approximately $8.4 million.

The players

Dow Briggs, M.D.

The Executive Vice President of Blue Cross and Blue Shield of Alabama.

Jackson Hospital

A hospital in Montgomery, Alabama that is facing financial struggles despite seeing a steady increase in revenue over the past decade.

Blue Cross and Blue Shield of Alabama

The health insurance provider that has been negotiating reimbursement rates with Jackson Hospital.

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What they’re saying

“We have increased Jackson's reimbursement beyond what our standard payment models called for, and we have made cash advances to the hospital to help ensure its viability.”

— Dow Briggs, M.D., Executive Vice President of Blue Cross and Blue Shield of Alabama

“Our goal has been partnership with the hospital, but our primary responsibility must remain the Alabama employers and families who pay premiums.”

— Dow Briggs, M.D., Executive Vice President of Blue Cross and Blue Shield of Alabama

The takeaway

This dispute highlights the complex balancing act insurers like Blue Cross must navigate between supporting healthcare providers and keeping costs affordable for their customers. The outcome could have significant implications for the future of Jackson Hospital and healthcare access in the Montgomery area.