Healthcare restructuring set for another busy year
February 2, 2024
Clare Moylan, Principal at Gibbins Advisors, spoke to Debtwire on the outlook for healthcare restructuring.
Moylan said 2023 was the most active year for healthcare bankruptcies in five years with senior care and pharmaceutical subsectors comprising almost half the total healthcare bankruptcies. Filings with liabilities over USD 100m surged in 2023, reaching 28 filings compared to only seven in 2022 and eight in 2021, according to Gibbins data.
The number of hospital bankruptcies spiked in 2023 in large part because many COVID-19-related government protections came to an end, Moylan said. “Now there’s a natural level of distress that ultimately returns to the market, so we could see the elevated level of hospital bankruptcy filings that we saw in 2023 continue through 2024,” she said.
