Montgomery’s Jackson Hospital & Clinic has agreed to no longer pursue its affiliation with a national investment firm as hospital leadership continues to search for a solution to recent financial struggles.

In June, the hospital’s board of trustees voted unanimously to affiliate with Virgina-based venture capital firm HumanityCorp as a way “to remain a not-for-profit and remain true to its mission and commitment to improving the health of all members of the community by providing superior, patient-centered, and cost-effective care in a safe, compassionate environment,” according to a previous release.

Following this week’s “amicable agreement” to end the partnership, Chief Restructuring Officer Allen Wilen and Ronald Dreskin, partner in charge of Eisner Advisory Group’s health care services practice, will be working with a team of professionals to “accelerate the hospital’s turnaround,” a Monday release said.

“For the past month, meetings have taken place with bondholders, insurers, government officials, suppliers, and other stakeholders to rally support for the hospital,” the release reads.

“Additionally, Allen Wilen took immediate steps to stabilize the hospital’s cash position, including arranging for additional financing through the existing lenders and bondholders…The cash infusion will provide the liquidity and runway needed for Wilen, Dreskin, and the senior leadership team to evaluate operations, devise a strategic plan for recovery and growth, and position the hospital for long-term success.”

Wilen was named chief restructuring officer last month after the hospital defaulted on a bond payment, as AL.com’s William Thornton reported previously.

The hospital defaulted on about $60 million worth of Medical Clinic Board of the City of Montgomery series 2015 bonds, which comprises 86% of the hospital’s long-term debt, the S&P said in a statement explaining why it lowered the hospital’s rating to “D” from “CC.”

The bondholder requested full payment after the hospital failed to make interest payments. The Montgomery hospital’s liquidity, according to S&P, “is very thin and insufficient to meet the bondholders’ demand for full payment.”

“The ‘D’ rating reflects that Jackson missed its most recent interest payment to bondholders on the series 2015 bonds, which was due on Sept. 3, 2024,” said S&P Global Ratings credit analyst Marc Arcas in a statement to Thornton. “The ‘D’ rating, by definition, indicates that the obligation is in default or in breach of an imputed promise, and this rating category is used when payments on an obligation are not made on the due date.”

Jackson previously cited inflation and high labor costs for its financial situation in a September Bloomberg article.

In this week’s release, the hospital said it would be taking the following steps to improve its standing:

• Evaluating operations to identify performance improvement opportunities.

• Directing efforts toward improving clinical utilization across the entire hospital, as well as improving internal processes.

• Addressing provider gaps to meet market demand and recruiting professional and clinical staff, which will increase top-line revenue.

• Building greater engagement from all key constituents, including community, philanthropy, government, and payor support.

• Meeting future demand for care and standing ready to meet the healthcare needs of individuals in Montgomery and the Alabama River Region.

The release added that there had been no change to the hospital’s employment as a result of recent events.

“Jackson Hospital remains open and will continue to provide access to superior, patient-centered, cost-effective care in a safe, compassionate environment for all individuals in Montgomery and the Alabama River Region,” this week’s statement concluded.