Clinic, Physician Practice Bankruptcies Rise in Healthcare Slump

Gibbins Advisors research was featured in a recent Bloomberg Law Deep Dive article by Natalie Weger examining the rise in Chapter 11 filings among clinics and physician practices as the healthcare industry contends with federal policy changes and broader financial pressure.

According to the Gibbins Advisors Interim 2026 Healthcare Bankruptcy Report, clinics and physician practices represented almost 30% of healthcare Chapter 11 cases with at least $10 million in liabilities in the first half of 2026, and filings in the subsector are on pace to reach their highest level since 2019.

The article highlighted notable 2026 cases, including Georgia ProtonCare Center Inc., which entered bankruptcy in January with more than $500 million in liabilities. The other six Chapter 11 cases listed in the Gibbins report had liabilities between $10 million and $50 million.

Gibbins Advisors Principal and Co-Founder Ronald Winters was quoted in the article: “Providers — including clinic and physician practice businesses — which have significant costs or debt may be challenged in navigating reduced business volume.”

Image credit: Bloomberg Law.