Health care providers have faced financial distress this year, leading several organizations to seek bankruptcy protection to reorganize their businesses.
Economic challenges that many have dealt with include increased insurance liability premiums, a decline in reimbursement rates, and rising labor, product, and operating costs.
The health care industry faced a higher rate of bankruptcy filings in the last two years, with 79 cases in 2023 and 57 in 2024, after averaging 42 bankruptcy filings each year from 2019 through 2022, according to Gibbins Advisors.
Health care providers file for bankruptcy
The year started with health care provider Prospect Medical Holdings on Jan. 11, 2025, filing for Chapter 11 bankruptcy protection with plans to reorganize certain medical assets, sell two medical centers in Rhode Island, and divest Pennsylvania assets through its case.
When it filed for bankruptcy, Prospect owned and operated 16 acute care and behavioral hospitals in California, Connecticut, Pennsylvania, and Rhode Island, providing a wide range of inpatient and outpatient services.
Landmark Holdings of Florida LLC, the parent company of six Landmark Hospital specialty hospital facilities, filed for Chapter 11 bankruptcy on March 9, 2025, to reorganize its businesses that are located in three states in the Midwest and South.
Genesis had over $2 billion in debt
In one of the larger cases, huge health care facilities operator Genesis Healthcare Inc. filed for Chapter 11 bankruptcy on July 9, with over $708 million in secured debt and over $1.5 billion in unsecured debt.
Genesis sought a sale of its assets to a stalking-horse bidder.
The health care provider operated 175 nursing facilities in 40 states, consisting of about 20,000 beds with 15,000 residents and an estimated 27,000 employees, when it filed for bankruptcy.
Image source: Getty Images
White-Wilson Medical Center files for bankruptcy protection
And now, 79-year-old multi-specialty physicians group White-Wilson Medical Center P.A. filed for Chapter 11 bankruptcy to reorganize its businesses and continue operating.
White-Wilson said it will implement a strategic restructuring of its secured and unsecured debt obligations, maximize the medical practice value to benefit creditors and stakeholders, preserve jobs and maintain ongoing patient services, and position the group for long-term success, according to an Oct. 7 statement.
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The debtor did not indicate whether it will seek a debtor-in-possession financing facility.
The Fort Walton Beach, Fla.-based debtor filed its petition in the U.S. Bankruptcy Court for the Northern District of Florida, listing $1 million to $10 million in assets and $10 million to $50 million in liabilities, according to an alert from Bondoro.
White-Wilson key petition data:
- $1 million to $10 million in assets.
- $10 million to $50 million in liabilities.
“White-Wilson has been proud to serve this community for nearly eight decades,” Dr. Kenneth Persaud, the group’s CEO, said in a statement.
“We are taking this step to address financial obligations, reduce debt and strengthen our foundation so we can continue providing high-quality care for generations to come,” Persaud said.
White-Wilson operates the largest multi-specialty physician group on Florida’s Emerald Coast, with locations throughout Okaloosa, Walton, and Santa Rosa counties.
Where are White-Wilson offices located?
- Fort Walton Beach, Fla.
- Crestview, Fla.
- DeFuniak Springs, Fla.
- Destin, Fla.
- Niceville, Fla.
- Navarre, Fla.
The physicians group leases offices across Fort Walton Beach, Crestview, DeFuniak Springs, Destin, Niceville, and Navarre, Fla., offering more than 15 medical specialties and employing over 300 workers.
“We believe this plan of reorganization is in the best interests of our patients, physicians, other clinicians, employees, and partners, as well as our community members. This will ultimately result in a more promising future,” said Dr. John C. Dali, President of White-Wilson Association, PA.
More bankruptcy:
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- 55-year-old women’s fashion company files Chapter 11 bankruptcy
“Our primary goal remains to keep our patients healthy and to heal them quickly, as it has always been able to do for the past 79 years,” Dali said.
Debtor counsel on the case includes Alberto “Al” Gomez Jr. and Michael Markham of Johnson Pope Bokor Ruppel & Burns LLP.
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