The healthcare sector has faced financial distress over the last year from a variety of economic problems including lingering effects of the Covid-19 pandemic, fierce competition, high indebtedness, rising interest rates, and rising costs driven by inflation.
Biotechnology firms, hospitals, and diagnostic companies have all encountered financial distress that has led to restructurings and bankruptcy filings.
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Among the biotech companies filing bankruptcy in 2025 so far are Omega Therapeutics, Molecular Templates, and Synthego Corp.
Related: Another major healthcare company files Chapter 11 bankruptcy
Hospital and clinic providers that filed for bankruptcy this year include Landmark Holdings of Florida LLC, operator of six Landmark specialty hospital facilities, which filed Chapter 11 in March 2025.
Prospect Medical Holdings, which owned and operated 16 acute care and behavioral hospitals in California, Connecticut, Pennsylvania, and Rhode Island, filed for bankruptcy in January 2025.
Healthcare provider Michigan Health Clinics P.C., which operates three medical clinics, filed for Chapter 11 bankruptcy protection on April 17, 2025, to reorganize its debts.
Accelerate Diagnostics files for Chapter 11 bankruptcy.
Image source: Getty Images
Accelerate Diagnostics files for bankruptcy
Finally, life-saving healthcare diagnostics company Accelerate Diagnostics Inc. filed for Chapter 11 bankruptcy, facing numerous economic challenges, including the lasting impact of the Covid-19 pandemic, regulatory headwinds, substantial debt, unfavorable capital markets, and increased industry competition.
Related: Major bankrupt healthcare provider closes distressed hospitals
The Tucson, Ariz.-based debtor filed its petition on May 8 in the U.S. Bankruptcy Court for the District of Delaware, listing over $28.5 million in assets and over $90 million in secured and unsecured debt.
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Its largest unsecured creditors include Sidley Austin LLP, owed over $523,000; Becton Dickinson & Co., owed over $403,000; and Innovative Certified Technical Plating, owed over $313,000.
Accelerate Diagnostics, which intends to file a plan of liquidation, will seek court approval of up to $36.8 million in debtor-in-possession financing from prepetition secured debt lender Indaba Capital Management L.P., including $12.5 million in new money, with $5 million available on interim approval, and a rollup of $24.3 million of prepetition debt.
Accelerate Diagnostics seeks to sell its assets
The debtor’s stockholder affiliate and prepetition secured debt lender Indaba has agreed to serve as the stalking horse bidder in the debtor’s Section 363 sale process with a credit bid of $36.87 million, consisting of the DIP loan, assumption of liabilities and cash to finance the bankruptcy case and to wind down the debtor’s estate after the sale closes.
Accelerate Diagnostics is a life-saving diagnostic company that develops and markets innovative technologies aimed at improving rapid identification and antibiotic susceptibility testing of serious infections, particularly bloodstream infections such as sepsis, according to a declaration by CEO Jack Phillips
The company generates revenue through the sale or lease of its proprietary diagnostic systems used by hospitals and clinical microbial laboratories to reduce the time it takes to determine which pathogens are present in a patient sample and which antibiotics are likely to be effective, enabling more targeted treatment, improved outcomes, and lower healthcare costs.
Accelerate Diagnostics’ customers include large healthcare systems, academic medical centers, and hospital laboratories, throughout the United States and internationally.
The company was founded as Sage Resources in 1982 and changed its name to Accelerate Diagnostics in 2012, but it has not achieved profitable operations or positive cash flows from operations since its inception. For the year ended December 2023, the company reported net losses of $61.6 million, and for the year ended December 2024, it lost $50 million.
Related: Another major health care company files for Chapter 11 bankruptcy
