October, 2024

Trend over time, by Case Size:

• After accelerating to a spike in Q3 2023, Healthcare Bankruptcy filings* are trending ~37% lower in 2024 than 2023 (based on annualized YTD Q3 2024 cases).
• With only nine healthcare bankruptcy filings* in Q3 2024, this marks the lowest number of cases since Q2 2022.
• Despite a steady stream of large cases exceeding $100 million in liabilities during Q1 and Q2 2024, only a single filing occurred in this category by Q3 2024.

Breakdown by Sub-Sector:

• While most subsectors are experiencing declines in case volumes, bankruptcies in Clinics and Medical Equipment have remained relatively stable. Based on annualizing YTD Q3 2024, bankruptcy filings for Clinics and Physician Practices are trending 8% higher in 2024 than in 2023, with Medical Equipment bankruptcies steadily rising since 2021.
• Consistent with previous trends, Senior Care and Pharmaceutical subsectors comprised almost half of the total Healthcare Bankruptcy filings*.
• Only one hospital company filed bankruptcy in YTD Q3 2024, but that company (Steward Health Care) included 31 hospitals.

For more information or queries, please contact Clare Moylan, cmoylan@gibbinsadvisors.com