In 2025, the surge of bankruptcy filings among health care providers, organizations, and hospitals that had characterized the previous two years has significantly diminished, with under one-third as many petitions submitted this year to date, according to data from Becker’s Hospital Review.
As of early October 2025, the health care sector has experienced at least 18 bankruptcy filings.
This figure is markedly lower than the 57 petitions filed in 2024 and the 79 in 2023. Additionally, it is less than half of the annual average of 42 filings recorded between 2019 and 2022, based on insights from Gibbins Advisors.
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Health care bankruptcy totals, Jan.-Oct. 2025: 18
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Health care bankruptcy totals, 2024: 57
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Health care bankruptcy totals, 2023: 79
This year’s significant filings include Genesis Healthcare Inc., which sought Chapter 11 bankruptcy protections on July 9, reporting over $708 million in secured obligations alongside more than $1.5 billion in unsecured debts.
In addition, notable health care services provider ModivCare Inc. and 70 affiliates filed a prearranged Chapter 11 bankruptcy on August 20, aiming to reduce their substantial $1.4 billion debt while transferring assets to prepetition lenders, amidst challenges like unsustainable capital structures, declining liquidity, and unfavorable industry conditions.
Recently, troubled biopharmaceutical firm Navidea Biopharmaceuticals Inc. filed for Chapter 11 protection as it grapples with financial difficulties stemming from extended litigation, supply chain challenges, and a recent threat of an involuntary bankruptcy filing.
The Columbus, Ohio-based entity reported assets ranging from $1 million to $10 million and liabilities between $10 million and $50 million in its Subchapter V filing dated October 1. In its submission, the company specified having $1.2 million in assets and $12.8 million in liabilities as of August 31, 2025.
Notable unsecured creditors for the company include Winstead PC, owed over $566,000; Fredrickson & Byron P.A., owed over $479,000; and WorldCare Clinic LLC, owed over $255,000.
Navidea is pursuing approval for up to $940,000 in debtor-in-possession financing from its secured creditor John Kimball Scott Jr., who is owed $7.76 million.
The firm specializes in precision medicine through immuno-targeted products, which include Lymphoseek, an innovative product aiding in the diagnosis of metastatic cancers that may have spread to lymph nodes and supporting the staging process.
