As the healthcare industry continues to face financial and policy shifts, hospital bankruptcies show no signs of slowing. Becker’s covered 20 healthcare organization bankruptcies in 2025, up from 15 in 2024, suggesting financial pressures from healthcare workforce shortages, rising operational costs and declining reimbursement rates.
Below are 11 hospitals, health systems and healthcare organizations seeking or exiting bankruptcy protection that Becker’s has reported on so far in 2026:
1. Atmore (Ala.) Community Hospital plans to seek Chapter 11 bankruptcy protection to support the hospital amid financial restructuring. The 49-bed facility said it has no plans to reduce or cut any services, including its emergency department, due to the bankruptcy filing. It also has no plans to close and patient care, appointments and providers will remain unaffected.
2. Pacifica Hospital of the Valley in Sun Valley, Calif., sought Chapter 11 protection July 4. The 231-bed acute care facility has estimated assets between $50 million and $100 million, with estimated liabilities from $100 million to $500 million.
Pacifica Hospital had an operating account holding of just $1,222.48 as of July 4 with several unrestricted cash accounts totaling just over $240,000.
3. Chicago-based GoHealth sought Chapter 11 protection June 7 as part of a prepackaged restructuring plan supported by its lenders and major equity holders. GoHealth plans to maintain operations without interruption during the Chapter 11 process. It will continue serving Medicare consumers, health insurance carriers and other business partners.
4. Opp, Ala.-based Mizell Memorial Hospital has sought Chapter 11 protection to stabilize its finances while maintaining operations. The hospital pointed to economic pressures like reimbursement shortfalls, rising workforce, pharmacy and supply costs and mounting regulatory and administrative burdens for its filing.
5. Marshall, Mo.-based Fitzgibbon Hospital voluntarily sought Chapter 11 bankruptcy protection in late April amid plans to potentially sell the facility. The independent rural hospital cited reimbursement at less than cost from government payers, rising operating costs and workforce shortages.
6. Greenwood (Miss.) Leflore Hospital sought Chapter 9 bankruptcy protection April 15 after it sent a WARN notice to employees informing them the hospital could close June 15, should it be unable to stabilize its finances. Greenwood Leflore also shared in mid-April that it was laying off 86 employees, or around 17% of its workforce, and cutting multiple service lines as it prepared to close or be acquired by a larger health system.
7. Louisville, Ky.-based Vanguard Surgical sought Chapter 11 protection March 31. The company’s filing listed estimated assets of $50,000 or less and liabilities between $100,001 and $500,000. The ASC, which is owned by Michael Hughes Jr., MD, expects to continue operations. A meeting of creditors is set for May 4.
8. Fort Walton Beach, Fla.-based physician group White Wilson Medical Center emerged from Chapter 11 bankruptcy through an acquisition by private equity firm Kain Capital, with funding earmarked for clinic expansion and a transition to value-based care. The independent physician group, which comprises more than 70 providers across nine clinic locations, sought Chapter 11 protection in October 2025.
9. Ogdensburg, N.Y.-based North Star Health Alliance and three of its operating affiliates sought Chapter 11 protection Feb. 10 as part of a restructuring process to help stabilize the health system’s finances. The filing includes North Star Health, Carthage (N.Y.) Area Hospital, Ogdensburg-based Claxton-Hepburn Medical Center and Medical Campus and Meadowbrook Terrace Assisted Living Facility in Carthage.
10. Carbon Health sought Chapter 11 protection Feb. 2 as part of a pre-arranged financial restructuring to help recapitalize the company or facilitate a sale. The San Francisco-based hybrid primary care company has reached an agreement with its existing lenders on a restructuring plan that establishes a path to new ownership.
11. In late January, Ouachita County Medical Center in Camden, Ark., shared plans to file for Chapter 11 bankruptcy reorganization at the end of January or early February. The decision came amid ongoing financial challenges, including $8 million in debt.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.