Healthcare Bankruptcies Slow in 2025, But Future Stability Uncertain
Healthcare bankruptcies have significantly decreased in 2025, but experts warn that the expiration of Affordable Care Act subsidies could reverse this trend and destabilize the industry.
Through October of this year, approximately 19 healthcare companies have filed for bankruptcy, a dramatic drop from the 57 filings in 2024 and 79 in 2023, according to data compiled by Becker’s Hospital Review. This represents less than half the average annual rate seen between 2019 and 2022. However, this positive trend is contingent on continued federal subsidies, which are slated to expire at the end of 2025.
Yesterday, Glutality Global Holdings LLC, a Florida-based healthcare technology company specializing in remote patient monitoring for conditions like diabetes, filed for Chapter 11 protection along with seven affiliates – Glutality Provider Group P.A., Glutality Provider Group of California P.C., Glutality Provider Group of Kansas P.A., Glutality Provider Group of New Jersey P.A., Sam Health LLC, Stride Slim LLC, and Welco Track Services LLC – listing assets and liabilities between $100 million and $500 million. The filing, made in the U.S. Bankruptcy Court for the Southern District of Florida, was reportedly triggered by internal disputes, as detailed by RK Consultants. The potential loss of Affordable Care Act subsidies could significantly increase the financial strain on healthcare providers, particularly those serving vulnerable populations.
The Congressional Budget Office projects that if the enhanced premium tax credits expire in January 2026, premiums could rise substantially, potentially leaving up to 4 million people without health insurance. This increase in uninsured individuals would likely lead to higher uncompensated care costs for hospitals and community health providers, threatening the financial viability of already fragile safety-net and rural facilities. The American Journal of Managed Care has extensively covered the impact of these subsidies on healthcare access and affordability, exploring the potential consequences of their expiration.
Officials are closely monitoring the situation and awaiting Congressional action on the future of these critical subsidies, which will determine the long-term financial health of the healthcare sector.
