Major healthcare provider files Chapter 11 | Global Market News
The healthcare sector has battled financial misery for the reason that finish of the Covid-19 pandemic as rising inflation drove up labor and working prices, legal responsibility insurance coverage prices elevated and reimbursement charges declined.Data from healthcare restructuring advisory firm Gibbins Advisors confirmed a development of a greater degree of chapter filings recorded in 2023 with 79 and 2024 with 57, in comparison with an average of 42 filings a yr from 2019 to 2022. 💵💰Don’t miss the transfer: Subscribe to TheRoad’s free each day publication💰💵Hospital bankruptcies fell final yr, nonetheless, as solely 5 hospital operators filed for chapter in 2024, in contrast with 12 in 2023. Filings have already begun in 2025. But the hospital bankruptcies filed in 2024 had been important ones.Related: Huge burger chain franchisee files for Chapter 11 chapterLandmark Holdings of Florida LLC, the guardian company of six Landmark specialty hospital services, on March 9, 2025, filed its petition in U.S. Bankruptcy Court for the Middle District of Florida, to reorganize its companies which are positioned in three states within the Midwest and South.Landmark listed $10 million to $50 million in property and $50 million to $100 million in liabilities.Major healthcare provider Prospect Medical Holdings, which owned and operated 16 acute care and behavioral hospitals in California, (*11*), Pennsylvania, and Rhode Island, filed for chapter in January 2025 with plans to reorganize sure medical property, promote two medical facilities in Rhode Island, and divest from one other in Pennsylvania.Large hospital operator files for chapterThe largest U.S. personal hospital operator Steward Health Care, which operated 31 hospitals in eight states, in May 2024 filed for chapter to promote its property and scale back $9 billion in debt. The debtor bought six hospitals in Massachusetts for $343 million in September 2024.Hospitals and health center operator CareLevel Health Systems, whose services operate as security nets for a giant underprivileged neighborhood, on Nov. 4, 2024, filed for Chapter 11 safety within the U.S. Bankruptcy Court for the District of Delaware to reorganize its unsustainable debt.Wellpath Holdings, a main healthcare provider for prisons and mental health services, and 38 associates on Nov. 11, 2024, filed for Chapter 11 safety within the Southern District of Texas to reorganize its companies and promote sure property to an advert hoc group of its prepetition lenders. The Nashville, Tenn.-based debtor blamed rising working and labor prices, elevated legal responsibility insurance coverage bills, underperforming contracts, and declining liquidity for inflicting its financial misery.
Michigan Health Clinics P.C. filed for Chapter 11 chapter safety. (Angela Palermo/Idaho Statesman/Tribune News Service through Getty Images)Idaho Statesman/Getty Images
Michigan Health Clinics files for bankruptcyFinally, healthcare provider Michigan Health Clinics P.C. filed for Chapter 11 chapter safety on April 17, 2025, to reorganize its money owed.Related: Another big auto components model files for Chapter 11 chapterThe Saginaw, Mich., chain of three medical clinics, which was established 22 years in the past, listed $1 million to $10 million in property and liabilities in its Subchapter V petition filed within the U.S. Bankruptcy Court for the Eastern District of Michigan in Bay City.More bankruptcies:
Michigan Health Clinics operates three clinics in Saginaw, Bad Axe, and Cass City, Mich., which serve 9 counties within the Wolverine State, together with Huron, Sanilac, Isabella, Tuscola, Lapeer, Bay, Midland, Saginaw, and Gratiot. The clinics are open Monday by means of Thursday, 8 a.m. by means of 5 p.m.The health clinics offer about 15 totally different companies, together with:
Related: Popular breakfast chain franchise files for Chapter 11 chapter
Stay up to date with the latest news within the world markets! Our web site is your go-to source for cutting-edge financial news, market trends, financial insights, and updates on worldwide trade. We present each day updates to make sure you have entry to the freshest data on stock market actions, commodity costs, currency fluctuations, and main financial bulletins.
Explore how these trends are shaping the long run of the worldwide economic system! Visit us recurrently for essentially the most participating and informative market content material by clicking right here. Our rigorously curated articles will keep you knowledgeable on market shifts, investment methods, geopolitical impacts, and pivotal moments in world finance.
