The variety of chapter filings associated to senior housing and care elevated 18% final yr, whilst whole well being care bankruptcies fell 21% in that point.
Ch. 11 Bankruptcies stemming from unbiased residing, assisted residing, CCRCs and expert nursing elevated from filings in 2024 to 13 filings in 2025, in accordance with a report by well being care advisory agency Gibbins Advisors.
Within the report, the corporate examined well being care sector Chapter 11 filings from the beginning of 2019 via the top of 2025 for firms with greater than $10 million in liabilities.
Between 2019 and 2025, senior care firms filed for Chapter 11 chapter 83 occasions, greater than half of which held between $10 million and $50 million of liabilities. In keeping with the report, that may place 2025 as among the many extra energetic chapter years for the senior care sector, eclipsed solely by 2019 and 2023, when there have been 15 filings these years. Additionally final yr, senior care chapter filings exceeded pharmaceutical filings for the primary time since 2021.
Senior care suppliers are nonetheless dealing with a “extended interval of strain” as a result of Medicaid cuts, protection losses, payor points and inflation.
Senior care led all well being care sectors with seven reported Chapter 11 filings within the first quarter of final yr, earlier than moderating all through the rest of 2025, the report discovered.
Center market firms, these with $10 million to $100 million in liabilities, made up two-thirds of well being care chapter filings final yr, a rise of 60% in 2024. Giant well being care firms, these with over $500 million in liabilities, declined to 6 circumstances in 2025 from 9 in 2024.
Well being care organizations are making ready for the impression of Medicaid spending cuts outlined within the so-called “One Huge Lovely Invoice” which was authorized by Congress in July of final yr. On the similar time, care is shifting from conventional hospital settings towards outpatient, group and home-based choices. It will require organizations to take a position capital, expertise and expertise into remaining aggressive in right now’s well being care panorama.
Genesis Healthcare, which operated 175 nursing houses throughout 40 states, filed for Chapter 11 safety in July of final yr. Senior Housing Information sister publication Expert Nursing Information reported in December of final yr that an affiliate of Pima Capital Companions had submitted the successful bid within the continuing chapter public sale to buy Genesis for $40 million in money and assume all liabilities.
In April of 2025, Pacifica Senior Residing, a administration platform underneath Pacifica Firms filed for Chapter 7 chapter safety. Later within the yr, Impressed Healthcare Capital shuttered Volante Senior Residing and moved communities to different operators. In 2026, senior residing operators are additionally nonetheless taking over distressed properties with turnaround methods as M&A continues to drive how buyers develop as growth stays muted at historic lows.
