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Jackson Hospital & Clinic, Inc., a 344-bed nonprofit facility serving Montgomery and the surrounding area, announced today that its Chief Executive Officer, Joe B. Riley, and Chief Operating Officer, Michael James, will step down on November 19 as part of a sweeping restructuring initiative aimed at stabilizing the hospital’s financial health. The move signals a pivotal moment for the hospital, which has been grappling with significant financial challenges in recent months. Ronald Dreskin, a seasoned healthcare consultant and Partner with EisnerAmper’s Health Care Services Group, has been appointed Interim CEO to guide the hospital through this critical period.
Retired Brig. Gen. Edward Crowell, chair of the hospital’s Board of Directors, praised the outgoing leaders for their service during difficult times. “Both Joe and Michael have served with dedication and expertise, and I thank them both for their contributions,” Crowell said. He framed the leadership change as a strategic step in the hospital’s broader effort to transform into a more focused clinical organization, adding, “A restructuring-focused Interim CEO, working alongside the Chief Restructuring Officer, will provide strategic oversight and clarity of vision to quickly execute a turnaround while enabling other senior leaders to focus on the hospital’s day-to-day management.”
This leadership shake-up comes on the heels of the hospital’s September decision to appoint Allen Wilen, a Partner with Eisner Advisory Group, as Chief Restructuring Officer. Wilen, whose expertise includes managing financial turnarounds for distressed healthcare organizations, has been tasked with addressing the hospital’s liquidity crisis, which reached a breaking point earlier this year when the hospital defaulted on $60 million in municipal bonds. The default resulted in S&P Global downgrading the hospital’s bond rating to ‘D,’ reflecting its dire financial state.
Dreskin, who will take over day-to-day operations as Interim CEO, brings decades of experience in healthcare transformation. At EisnerAmper, he leads a multidisciplinary team specializing in operational, financial, and regulatory management for healthcare clients. His role will complement Wilen’s restructuring efforts, which are focused on stabilizing the hospital’s cash position, reducing costs, and ensuring long-term viability. Together, Dreskin and Wilen will report directly to the hospital’s Board of Directors.
Despite its financial challenges, Jackson Hospital remains committed to serving the community. Crowell reassured patients and stakeholders that the hospital remains open and continues to deliver “superior, patient-centered, cost-effective care in a safe, compassionate environment.” The restructuring effort, while ambitious, seeks to minimize disruptions to patient care and ensure the hospital’s role as a cornerstone of Montgomery’s healthcare system.
As part of the turnaround plan, the hospital is exploring the divestiture of non-core operations to refocus resources on acute care. This may include transferring the Hospice of Montgomery service to a specialized hospice provider and selling the Jackson Wellness Center, a 17,000-square-foot medical fitness facility, to an organization better equipped to manage fitness-focused operations. These measures aim to streamline the hospital’s operations while ensuring that essential services remain accessible to the community.
The financial difficulties faced by Jackson Hospital are not unique, as healthcare providers across the country contend with rising labor costs, inflationary pressures, and the lingering effects of the COVID-19 pandemic. However, the hospital’s leadership is optimistic that the restructuring will position it for a sustainable future. By bringing in experienced leaders like Dreskin and Wilen, the Board is betting on strategic expertise and decisive action to pull the hospital out of its financial quagmire.
Jackson Hospital’s journey through this crisis underscores the complex challenges facing nonprofit healthcare facilities today. As the hospital works to navigate these turbulent waters, the focus remains on delivering quality care to its patients while building a foundation for long-term stability.
