Additionally, a shift in patient volumes and regulatory changes have further strained finances, forcing some hospitals to restructure or close.
Below are seven hospitals, health systems, and healthcare organizations that Becker’s has reported as seeking or exiting bankruptcy protection in 2025:
1. Cape Girardeau, Mo.-based Landmark Holdings of Florida, a six long-term acute care hospital operator, sought Chapter 11 protection March 9. The company has struggled with growing financial challenges, like declining Medicare reimbursements, rising labor costs and liquidity constraints.
2. West Palm Beach, Fla.-based Coral Behavioral Services filed Chapter 7 protection in early March. The company, which provided applied behavioral analysis therapy for children with autism spectrum disorder, has debts around 40 times its value. It generated no value and did not operate in 2024.
3. NES Health, a physician-led staffing firm, filed a Chapter 7 bankruptcy Feb. 21, marking the company’s official collapse following months of financial challenges that left emergency department physicians at multiple hospitals across the nation unpaid. The company has estimated assets worth from $1 million to $10 million and liabilities that range between $10 million and$50 million.
4. Montgomery, Ala.-based Jackson Hospital and Clinic sought Chapter 11 protection in early February to implement financial restructuring and reorganize operations. The nonprofit hospital has dealt with “significant financial pressures” over the past few years due to challenges such as COVID-19, a difficult payer mix, increased labor costs and stagnant reimbursement rates.
5. Los Angeles-based Prospect Medical Holdings, sought Chapter 11 protection in January and has been working to offload 10 of its 16 hospitals. The for-profit, private equity-backed system initiated voluntary bankruptcy proceedings to facilitate the timely completion of its planned hospital sales. Prospect plans to restructure and exit the Connecticut, Rhode Island and Pennsylvania hospital markets and focus on California solely.
Prospect’s PHP Holdings, which includes Prospect Health Plan, Prospect Medical Systems and Foothill Regional Medical Center, were not listed in the bankruptcy filings and are expected to be sold to Alhambra, Calif.-based Astrana Health by mid-2025. The system also reached a deal to keep its Upland, Pa.-based Crozer Health open “for the immediate future” after sharing plans to close in early March.
6. The Bellevue Hospital in Toledo, Ohio, sought Chapter 11 protection and plans to be acquired by Sandusky, Ohio-based Firelands Health. The hospital cited challenges like rising operational costs, regulatory complexity, funding constraints and access to capital. The hospital’s restructuring and acquisition will allow it to meet financial obligations while continuing to provide patient care.
7. Elmira, N.Y.-based Southern Tier Orthodontics abruptly closed in early January and informed patients it was declaring bankruptcy due to personal and financial reasons. Jason Horn, DDS, the orthodontist and owner of the practice, told patients he would provide records to new orthodontists for continued care, but would not be able to reimburse patients, even for those that paid in full or advance.
