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Axios
12-08-2025
- Health
- Axios
Why more doctors can't make ends meet
America's doctors are working harder and getting paid less. And that could soon translate into less access for some patients. The big picture: A new report from consultancy Kaufman Hall shows primary care physicians and specialists are delivering more services since the pandemic. But they're not making more money because of stagnant reimbursements from public and private insurers and inflation. The data helps explain why medical practice bankruptcies hit a six-year high last year — and why some providers are shifting to pricey procedures for cash-paying customers to boost their bottom lines. By the numbers: There was a roughly 5% increase in net revenue per full-time provider between the second quarters of 2023 and 2025, Kaufman Hall said, based on data from more than 200,000 clinicians across the country. But over the same period, the amount of net revenue per unit of work — generally understood to mean how much a physician generates for the volume of work they put in — fell 7%, the report found. Between the lines: A reckoning may not be far off, with millions of Americans projected to lose coverage due to changes in Republicans' tax-and-spending bill. "In the coming months if more patients lose insurance coverage, this trend will likely get worse," said Kaufman Hall managing director Matthew Bates. The anticipated drop-off in income is compounded by rising labor costs, which already make up 84% of total expenses for medical groups. And some physicians struggle to find and hold on to good help. "At some point this growth in productivity starts to be impeded if the doctor has to go out and check in their own patients and take their vitals, they're not gonna be able to see as many patients," Bates said. The end of the COVID-19 crisis didn't improve business for many practitioners, as troubling trends that surfaced during COVID-19 have persisted. The consultancy Gibbins Advisors found there were 57 medical practice bankruptcies with more than $10 million in liabilities last year. While the bankruptcy filings have slowed this year, Clare Moylan, a principal at Gibbins, said it doesn't necessarily signal a turnaround. "The health care sector has a lot of macro shifts causing distress for providers," she said, pointing to persistent workforce shortages, elevated supply expenses and now, the threat of tariff-driven inflation. Meanwhile, bankruptcies amid smaller practices of between $500,000 and $2 million in revenue have been steadily rising in the last two to three years, said Daniel Gielchinsky, a partner at DGIM Law in Florida who specializes in bankruptcies. Between the lines: Among the disturbing trends Gielchinsky has observed are medical practices branching into med spa-like services and investing in Botox supplies and skin-tightening lasers in hopes of capturing wealthy patients seeking elective procedures. They're finding out that consumers have less disposable income than they expected, and the competition is fierce. "We had one bankruptcy where the equipment was literally unused. They didn't get a single patient in the door to do any laser treatments, but they've had this $800,000 machine they're making payments on every month," he said. Many doctors have opted to sell their practices to a health system or private equity firm. But critics say that has accelerated the corporatization of medicine and put power in the hands of for-profit entities that have raised prices and put shareholder value above patients' interests. The other side: Doctors could see up to a 3.8% increase to their Medicare payments next year under a Trump administration proposal released earlier this summer. But to maximize their reimbursements, practices would have to agree to be paid based on patient outcomes instead of the volume of services delivered. "There is a little relief on the reimbursement side coming in 2026 to help combat those headwinds," Moylan said.
Yahoo
08-08-2025
- Business
- Yahoo
Healthcare bankruptcies dipped to 3-year low in the second quarter
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Dive Brief: Healthcare bankruptcies dropped to a three-year low during the second quarter of 2025, according to a new report from Gibbins Advisors. Just seven companies with at least $10 million in liabilities filed for Chapter 11 protections, compared with 14 in the same period last year. The restructuring advisory firm predicts there will be 16% fewer filings this year compared to 2024, as less large healthcare companies and providers declare bankruptcy. However, the dip may be short lived. Challenging market conditions, including impacts from cuts to Medicaid, could hit providers' bottom lines as early as 2026, potentially spurring a new wave of bankruptcies, according to Gibbins. Dive Insight: The results follow two quarters of heightened healthcare bankruptcy activity, including 19 filings during the fourth quarter of 2024 and 17 filings in the first quarter of 2025. Hospital and physician practice bankruptcies were elevated during that time, with eight and six companies filing, respectively, according to the report. However, in the second quarter, there were zero provider bankruptcy filings, according to Gibbins' analysis. Instead, the lion's share of the seven healthcare filings came from pharmaceutical companies, with five filing for bankruptcy during the quarter. One medical supply company and one senior care company also declared bankruptcy during the period. Still, the report is not a reason for optimism about the sector's financial health, Gibbins analysts said. Providers in particular have been hit hard by policy changes in Washington, including the introduction of tariffs on critical supplies and general market volatility. Looming Medicaid cuts are likely to spell future trouble. 'The unprecedented funding cuts in the One Big Beautiful Bill Act are deeply troubling for the future of healthcare,' said Clare Moylan, principal at Gibbins Advisors, in a statement. 'Hospitals serving vulnerable communities — especially those with high Medicaid populations and dependent on supplemental payments — face the greatest risk.' President Donald Trump signed the 'One Big Beautiful Bill Act' into law on July 4, following significant pushback from hospital lobbyists and nonpartisan analysts. The sprawling legislation cuts roughly $900 billion from Medicaid over a decade, in part through creating work requirements, which will kick in at the end of 2026. Ten million additional people are expected to become uninsured by 2034 under the law, according to an analysis published last month by the Congressional Budget Office. Hospitals have expressed concern that this will weigh on their bottom lines, as uncompensated care costs rise. Meanwhile, enhanced premium tax credits are also set to expire at the end of 2025, resulting in an additional 5.1 million people losing coverage if lawmakers don't renew them, according to the CBO. The legislation also limits provider taxes beginning in 2027 — a huge ding to provider revenue, especially in expansion states. Providers will contend with these challenges as they navigate yearslong problems, including staffing shortages, payer disputes and volatile markets. Healthcare companies most able to weather the storm will critically review their budgets for waste, adjust workflows to leverage automation or outsourcing and focus on efficient supply chain management, said Gibbins. Recommended Reading Historic Medicaid cuts to come as Trump signs domestic policy bill Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
10-07-2025
- Business
- Miami Herald
Troubled national health care provider files Chapter 11 bankruptcy
Health care providers have faced economic challenges over the last year, leading them to consider out-of-court restructurings, bankruptcy filings, selling off facilities, and sometimes closing locations. Financial issues have included a decline in reimbursement rates, increased insurance liability premiums, and rising labor, product, and operating costs. Don't miss the move: Subscribe to TheStreet's free daily newsletter Senior care Chapter 11 filings reached a two-year high in the first quarter of 2025, while hospital bankruptcy filings doubled compared to recent trends, health care restructuring advisory firm Gibbins Advisors reported in May. Related: Home Depot rival files for Chapter 11 bankruptcy to sell assets 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 provider Prospect Medical Holdings on Jan. 11, 2025, filed 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. Prospect employed about 12,600 workers and 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. Also, 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. And now, huge health care facilities operator Genesis Healthcare Inc. has filed for Chapter 11 bankruptcy, seeking a sale of its assets to a stalking-horse bidder. The Kennett Square, Pa.-based health care provider and 297 affiliates filed their petition in the U.S. Bankruptcy Court for the Northern District of Texas on July 9, listing $1 billion to $10 billion in assets and liabilities, including over $708 million in secured debt and over $1.5 billion in unsecured debt. Related: Major retail chain supplier files for bankruptcy liquidation The debtor's largest creditors include a real estate loan to MAO 22322 LLC, owed over $324 million; the Internal Revenue Service, owed over $103 million; and Healthcare Services Group Inc., owed over $68 million in trade debt. More bankruptcy Major iconic food brand files for Chapter 11 bankruptcyPopular Dairy Queen rival franchisee files Chapter 11 bankruptcyPopular vision care chain files for Chapter 11 bankruptcy Genesis Healthcare is seeking $30 million in debtor-in-possession financing from its prepetition lenders and approval of a stalking-horse bid to purchase the company out of bankruptcy from affiliates of prepetition lender ReGen Healthcare Inc. The debtor's founders, Michael Walker and Richard Howard, launched the company in 1985 with the acquisition of nine skilled nursing facilities. The company expanded over the years to over 500 facilities with 60,000 licensed beds in 30 states by 2016, according to a declaration by Co-Chief Restructuring Officer Louis E. Robichaux IV. As the company expanded, profits did not grow, and its facilities became difficult to manage. The company began divesting unprofitable facilities in 2017, dropping to fewer than 400 facilities by the beginning of 2020 when Covid struck. The company faced a liquidity shortfall, but avoided bankruptcy when ReGen Healthcare provided a $100 million capital infusion, and it renegotiated certain leases. Genesis Healthcare's financial distress continued, as it could not handle $8 million per month in settlement and defense costs on personal injury and wrongful death cases. It hired restructuring advisers in the first half of 2025 and decided to file for bankruptcy protection. The health care provider currently operates 175 facilities in 40 states, consisting of about 20,000 beds with 15,000 residents and an estimated 27,000 employees. The company's facilities consist of 165 skilled nursing facilities and 10 assisted-living/independent-living facilities. Related: Popular movie theater chain files Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
19-04-2025
- Business
- Miami Herald
Major healthcare provider chain files for Chapter 11 bankruptcy
The healthcare sector has battled financial distress since the end of the Covid-19 pandemic as rising inflation drove up labor and operating costs, liability insurance costs increased and reimbursement rates declined. Data from healthcare restructuring advisory firm Gibbins Advisors showed a trend of a higher level of bankruptcy filings recorded in 2023 with 79 and 2024 with 57, compared to an average of 42 filings a year from 2019 to 2022. Don't miss the move: Subscribe to TheStreet's free daily newsletter Hospital bankruptcies fell last year, however, as only five hospital operators filed for bankruptcy in 2024, compared with 12 in 2023. Filings have already begun in 2025. But the hospital bankruptcies filed in 2024 were significant ones. Related: Huge burger chain franchisee files for Chapter 11 bankruptcy Landmark Holdings of Florida LLC, the parent company of six Landmark specialty hospital facilities, on March 9, 2025, filed its petition in U.S. Bankruptcy Court for the Middle District of Florida, to reorganize its businesses that are located in three states in the Midwest and South. Landmark listed $10 million to $50 million in assets and $50 million to $100 million in liabilities. Major healthcare provider 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 with plans to reorganize certain medical assets, sell two medical centers in Rhode Island, and divest from another in Pennsylvania. The largest U.S. private hospital operator Steward Health Care, which operated 31 hospitals in eight states, in May 2024 filed for bankruptcy to sell its assets and reduce $9 billion in debt. The debtor sold six hospitals in Massachusetts for $343 million in September 2024. Hospitals and health center operator CarePoint Health Systems, whose facilities operate as safety nets for a large underprivileged community, 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. Wellpath Holdings, a leading healthcare provider for prisons and mental health facilities, and 38 affiliates on Nov. 11, 2024, filed for Chapter 11 protection in the Southern District of Texas to reorganize its businesses and sell certain assets to an ad hoc group of its prepetition lenders. The Nashville, Tenn.-based debtor blamed rising operating and labor costs, increased liability insurance expenses, underperforming contracts, and declining liquidity for causing its financial healthcare provider Michigan Health Clinics P.C. filed for Chapter 11 bankruptcy protection on April 17, 2025, to reorganize its debts. Related: Another huge auto parts brand files for Chapter 11 bankruptcy The Saginaw, Mich., chain of three medical clinics, which was established 22 years ago, listed $1 million to $10 million in assets and liabilities in its Subchapter V petition filed in the U.S. Bankruptcy Court for the Eastern District of Michigan in Bay City. More bankruptcies: Popular restaurant and bar chain files for Chapter 11 bankruptcyPopular athletic shoe chain files for Chapter 11 bankruptcyAward-winning cosmetics brand files for Chapter 11 bankruptcy Michigan Health Clinics operates three clinics in Saginaw, Bad Axe, and Cass City, Mich., which serve nine counties in the Wolverine State, including Huron, Sanilac, Isabella, Tuscola, Lapeer, Bay, Midland, Saginaw, and Gratiot. The clinics are open Monday through Thursday, 8 a.m. through 5 p.m. The health clinics offer about 15 different services, including: Urgent Care,Pediatrics and Family Practice,Dermatology,Endocrinology, Rheumatology,Women's Health,Wound Care/Lymphedema,Imaging Center,Infusion Center,Laboratory,Infectious Disease,Occupational Health,Employee Health,Physical Therapy,Pain Management Related: Popular breakfast chain franchise files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
03-04-2025
- Business
- Miami Herald
National senior living chain liquidates in Chapter 7 bankruptcy
Senior living facility operators have faced enormous obstacles since the beginning of the Covid-19 pandemic that led many into financial distress and forced several of them to file for bankruptcy and sometimes permanently shut down. Senior care home companies were overwhelmed in 2020 during the pandemic, as 40% of residents in facilities had or likely had Covid-19 that year. Over 1,300 facilities had infection rates of 75% or higher in surge periods, the U.S. Department of Health and Human Services Office of the Inspector General reported. Don't miss the move: Subscribe to TheStreet's free daily newsletter A major problem for senior facilities was staffing challenges, as high infection rates led to a significant loss of staff and difficulties in hiring, training, and retraining new staff. Related: Major auto parts brand moves Chapter 11 bankruptcy to liquidation Economic issues mounted as rising inflation after the start of the pandemic impacted senior facilities' expenses and increased the cost of products, supplies, and employee wages. Higher interest rates in the last three years have also increased the cost of facility operators' debt. Senior care companies also dealt with inadequate Medicare, Medicaid, and insurance reimbursements that led to capital shortfalls. From 2021 through 2024, 51 senior care companies filed for bankruptcy with 13 in 2021, 12 in 2022, 15 in 2023, and 11 in 2024, according to data from Gibbins Advisors. Among the operators to file for Chapter 11 bankruptcy in 2023 were Evangelical Retirement Homes of Greater Chicago, which filed Chapter 11 in June 2023 to sell its assets at auction, and Windsor Terrace Health, an operator of 32 nursing homes in California and three in Arizona, in August 2023. Several senior care facility operators faced financial distress and filed for bankruptcy protection in 2024 as well. Magnolia Senior Living, an operator of four facilities in Georgia, filed for Chapter 11 protection on March 19, 2024. One day later, huge senior living firm Petersen Health Care, which operated about 100 nursing homes, assisted-living and long-term care facilities in Illinois, Iowa and Missouri, filed for Chapter 11 bankruptcy protection on March 20, 2024. And now, giant senior care facility chain Pacific Senior Living LLC, which operates about 93 care homes nationwide, on March 24, 2025, filed for Chapter 7 liquidation, with some of its facilities reportedly set to evict residents and close. Related: Popular whiskey brand files for Chapter 11 bankruptcy Residents of Pacifica Senior Living's Santa Clarita Hills Senior Living in Newhall, Calif., were informed in late February that they would need to move out of the 88-unit facility, which was set to close on May 1, according to The Signal. More bankruptcies: Popular restaurant and bar chain files for Chapter 11 bankruptcyPopular athletic shoe chain files for Chapter 11 bankruptcyAward-winning cosmetics brand files for Chapter 11 bankruptcy Pacific Senior Living has also faced legal judgments as it settled a lawsuit in 2024 for $2.5 million involving its Healdsburg Senior Living facility in Healdsburg, Calif., the Santa Rosa Press Democrat reported. The San Diego-based debtor listed up to $100,000 in assets and $10 million to $50 million in debts in its petition filed in the U.S. Bankruptcy Court for the Southern District of California in San Diego. Pacific Senior Living, which was founded in 1978, operates independent-living, assisted-living, memory-care, respite-care, skilled-nursing, and adult-care facilities. Rates at the company's facilities range from $1,795 to $7,500 per month for assisted-living care, $2,500 to $7,200 for memory care, and $1,995 to $6,695 for independent-living care, according to data from Related: Another iconic restaurant chain files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
