Major healthcare provider chain files for Chapter 11 bankruptcy
A major health clinic chain has filed for bankruptcy.
The healthcare sector has battled financial distress since the end of the Covid-19 pandemic as rising inflation drove up labor and operating costs, liability insurance costs increased and reimbursement rates declined.
Data from healthcare restructuring advisory firm Gibbins Advisors showed a trend of a higher level of bankruptcy filings recorded in 2023 with 79 and 2024 with 57, compared to an average of 42 filings a year from 2019 to 2022.