by
Gus Iversen, Editor in Chief | May 11, 2026
Mizell Memorial Hospital in Opp, Alabama, has filed for Chapter 11 bankruptcy protection as the rural provider works to stabilize its finances while maintaining operations.
The hospital announced April 29 that it voluntarily filed for protection in the U.S. Bankruptcy Court for the Middle District of Alabama. Hospital officials said all services and locations will remain open during the restructuring process, including emergency care, clinics and urgent care operations.
The not-for-profit hospital said employees, physicians and medical staff will continue to be paid, and scheduled appointments and procedures will proceed as planned.
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“We assure you that filing for Chapter 11 provides a structure to address specific financial challenges while continuing our daily operations,” CEO Deborah Franklin said in a statement. “We are open! Your hospital will stay open. We welcome all.”
Hospital leaders pointed to broader financial pressures affecting rural healthcare providers nationwide, including reimbursement challenges and rising labor, pharmacy and supply costs. The organization also cited increasing regulatory and administrative demands.
Mizell Memorial Hospital has served Covington County and surrounding communities for more than 75 years. The hospital operates a 5-bed intensive care unit, a 24-hour emergency department, swing bed rehabilitation services, a behavioral health unit for seniors, an infusion center, and clinics in Opp and Elba.
According to the hospital, the organization employs more than 200 people and is the largest employer in Opp. Hospital officials estimate the facility generates an additional 125 jobs in the surrounding community and contributes roughly $48 million in economic impact.
Rural hospitals across the U.S. have faced mounting financial strain in recent years, with many providers citing staffing shortages, inflation and reimbursement gaps as threats to long-term sustainability. Chapter 11 filings have increasingly become a restructuring option for community hospitals seeking to continue operations while addressing debt obligations.
Franklin said the hospital plans to continue serving the region throughout the bankruptcy proceedings.
