MONTGOMERY, Ala. (WSFA) – In a significant leadership change aimed at stabilizing its fiscal situation, Montgomery’s Jackson Hospital is implementing a restructuring initiative to rectify its financial challenges.
Effective Tuesday, Nov. 19, CEO Joe B. Riley and Chief Operating Officer Michael James will step down as part of the hospital’s strategic effort to “explore all of its options to return to financial health.”
Ronald Dreskin, an experienced partner at EisnerAmper’s Health Care Services Group, has been appointed as interim CEO.
“Both Joe and Michael have demonstrated unwavering commitment and expertise during their tenures, and I express my gratitude for their contributions,” remarked retired Brig. Gen. Edward Crowell, chair of Jackson’s Board of Directors. “This transition is crucial in our restructuring initiative aimed at elevating the Hospital to a focused clinical organization and achieving financial stability. A restructuring-focused Interim CEO will work collaboratively with the Chief Restructuring Officer to provide strategic direction and a clear vision required to facilitate a prompt turnaround while allowing other senior leaders to manage the hospital’s daily operations effectively.”
In a pivotal moment for the institution, the hospital defaulted on $60 million bond payments in September, which negatively impacted its credit status. To navigate this tumultuous phase, the board appointed Allen Wilen, a partner with Eisner Advisory Group, as Chief Restructuring Officer.
In the preceding months, the not-for-profit hospital had entered an agreement with HumanityCorp, but later chose to amicably separate from the partnership.
Dreskin brings a wealth of expertise, leading a specialized team at EisnerAmper that addresses a wide range of healthcare disciplines, including transformational initiatives, operational efficiency, financial management, and compliance with regulatory requirements.
“He has been instrumental in guiding clients through significant performance improvements, navigating large-scale strategic changes, and managing through periods of both growth and distress,” the hospital affirmed in its official press release.
Dreskin is set to oversee the hospital’s daily operations, while Wilen will concentrate on leading the ongoing restructuring efforts, reporting directly to the Board of Directors.
Officials reiterated that Jackson Hospital & Clinic remains operational and dedicated to offering continued access to essential healthcare services amid these transformative changes.
Looking ahead, the hospital is considering strategic next steps that may involve divesting non-core operations to realign its focus on acute care, while ensuring the community retains access to those non-core services. This includes plans to transition the management of the Hospice of Montgomery service to a specialized hospice care organization and potentially selling the Jackson Wellness Center to a company with a fitness-centric approach.
The hospital currently has 344 beds and provides critical services, including 24-hour emergency care, cardiac care, cancer treatment, neurosciences, orthopedics, and women’s and children’s health services.
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How does Ronald Dreskin plan to enhance operational efficiency and financial management during the restructuring process at Jackson Hospital?
**Interview with Ronald Dreskin, Interim CEO of Jackson Hospital**
**Editor:** Thank you for joining us today, Ronald. With the recent leadership changes at Jackson Hospital, can you elaborate on the motivations behind the restructuring initiative?
**Ronald Dreskin:** Thank you for having me. The primary motivation for this restructuring is to stabilize our financial situation following some significant challenges, including the default on our $60 million bond payments. Our goal is to explore every possible option to restore the hospital’s financial health and redirect our focus toward being a truly clinical organization.
**Editor:** In light of these changes, how do you plan to approach your new role as interim CEO?
**Ronald Dreskin:** I plan to work closely with the Chief Restructuring Officer, Allen Wilen, and collaborate with our senior leadership team. Our focus will be on providing strategic direction and a clear vision for the hospital, all while ensuring that daily operations run smoothly. We have a solid plan to enhance operational efficiency and financial management, which are critical to our turnaround strategy.
**Editor:** Previous CEO Joe B. Riley and COO Michael James have both left after demonstrating their commitment to the hospital. Can you share your thoughts on their contributions?
**Ronald Dreskin:** Absolutely. Both Joe and Michael have made significant contributions during their time here. Their experience and dedication to Jackson Hospital are commendable, and my aim is to carry forward their positive initiatives while implementing necessary changes to address our current challenges.
**Editor:** You mentioned the hospital had an earlier partnership with HumanityCorp that ended amicably. How will future partnerships or collaborations factor into the hospital’s restructuring?
**Ronald Dreskin:** Partnerships will certainly be a consideration as we move forward. We need to identify collaborators who align with our mission and strategic goals. The right partnerships can enhance our capabilities and support our recovery efforts, so we’ll be exploring those options carefully.
**Editor:** Lastly, what message would you like to convey to the Montgomery community as you take on this interim role?
**Ronald Dreskin:** I want to assure the community that our top priority is to restore Jackson Hospital to a position of strength and reliability. We’re committed to transparency and will keep the community updated as we navigate this process. Together, we can improve healthcare access and quality for everyone in Montgomery. Thank you for your support and understanding during this time of transition.
**Editor:** Thank you for your insights, Ronald. We wish you the best in your new role.
