American healthcare providers have battled financial distress over the last year with several companies closing locations, selling off facilities, and in some cases filing for bankruptcy to reorganize their businesses and restructure debt.
In 2024, five hospital operators filed for bankruptcy after 12 companies filed petitions in 2023. Private hospital operator, Steward Health Care, which operated 31 hospitals in eight states, filed for bankruptcy in May 2024 to sell its assets and reduce $9 billion in debt.
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The debtor sold six hospitals in Massachusetts for $343 million in September 2024.
Related: Key healthcare company files for Chapter 11 bankruptcy
Hospitals and health center operator CarePoint Health Systems on Nov. 4, 2024, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware to reorganize its unsustainable debt.
As 2024 concluded, this year began with Prospect Medical Holdings and 66 affiliates on Jan. 11, 2025, filing for Chapter 11 bankruptcy protection with plans to reorganize or sell certain medical assets.
Hospitals close facilities
The debtor, which employed about 12,600 workers, 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.
Prospect Medical Holdings won bankruptcy court approval to close its two remaining Crozer Health hospitals in Pennsylvania — Crozer-Chester Medical Center in Chester, Pa., and Taylor Hospital in Ridley Park, Pa. — after failing to find a buyer for the properties.
Next, Landmark Holdings of Florida LLC, the owner of six Landmark Hospital specialty hospital facilities, filed for Chapter 11 bankruptcy on March 9, 2025, to reorganize six facilities that are located in Florida, Georgia, and Missouri.
Not all healthcare companies that close facilities need to file for bankruptcy.
Planned Parenthood North Central States is closing eight of its clinics.
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Planned Parenthood closes 8 clinics
Healthcare provider Planned Parenthood North Central States revealed that it will close eight of its 23 clinics — four in Minnesota and four in Iowa — and consolidate the services of those facilities with its 10 other clinics in Minnesota and two in Iowa, Minnesota Public Radio reported.
Related: Major health care company files for bankruptcy to sell assets
The controversial healthcare provider also operates two clinics in Nebraska and one in South Dakota.
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Planned Parenthood North Central States said the closing of the eight clinics will result in the layoff of 66 staff members, reassignment of 37 workers, and a reduction of 35 more positions in other ways.
“We have been fighting to hold together an unsustainable infrastructure as the landscape shifts around us and an onslaught of attacks continues,” Ruth Richardson, the affiliate’s president and CEO, said in a statement reported by MPR.
In April, President Trump’s administration froze $2.8 million in federal funds for Minnesota to provide birth control and other services, such as cervical cancer screenings and testing for sexually transmitted diseases, Planned Parenthood North Central States said.
Five Planned Parenthood clinics in Minnesota provide abortion procedures, but under federal law, federal funds can’t be used for most abortions.
The regional Planned Parenthood affiliate blamed proposed cuts to Medicaid, which provides healthcare coverage to low-income Americans, and the Trump Administration’s proposal to eliminate funding for teenage pregnancy prevention programs for its financial distress, requiring the closing of the clinics.
The affiliate also cited Iowa’s ban on abortions after about six weeks of pregnancy for causing the number performed there to drop 60% in the first six months the law was in effect, MPR reported.
Related: Major bankrupt healthcare provider closes distressed hospitals
