Major healthcare provider files for Chapter 7 liquidation
A major home healthcare and hospice provider files for Chapter 7 bankruptcy to liquidate its assets.
The healthcare sector has faced economic problems over the last two years with rising labor and operating costs driven by inflation, increased liability insurance rates, as well as a decline in reimbursement rates.
These challenges have led to a higher rate of bankruptcy filings in the industry, with 79 cases in 2023 and 57 in 2024, after averaging 42 bankruptcy filings each year from 2019 through 2022. Within those numbers, 12 hospital companies filed for bankruptcy in 2023, while five filed in 2024.
