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 seven hospitals, health systems and healthcare organizations seeking or exiting bankruptcy protection that Becker’s has reported on so far in 2026:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
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