Three physician practices announced or completed closures within the past month, the latest sign of mounting financial pressure on physician groups across the country.
The wave follows a turbulent stretch for physician practice finances. Bankruptcies climbed to their highest level in recent years in 2024 before easing somewhat in 2025. Becker’s tracked 23 physician practice closures in 2025.
Here are the three closures:
1. MercyOne announced plans to close its South Des Moines (Iowa) Family Medicine and Urgent Care office on June 26, citing staffing shortages and government reimbursement rates that do not cover the full cost of care. The closure is the latest in a series of cutbacks for the health system, which announced 67 job cuts from its revenue cycle department in January and previously closed its Ottumwa, Iowa, clinic.
2. Cayuga Primary Care Dryden, a primary care clinic that has served Dryden, N.Y. for more than 70 years, closed May 1. The practice, part of Centralus Health, has operated since 1955. Centralus cited staffing challenges and the cost of maintaining an aging facility as reasons for the closure. Services will relocate to offices in Cortland beginning May 4.
3. Baptist Health Fort Smith (Ark.) announced plans to close its cardiology clinic and end related services as part of a broader restructuring effort.The changes follow earlier cuts, including the April 28 closure of labor and delivery services, as well as 40 layoffs. Additional specialty services, including nephrology, pulmonary, oncology and infectious disease, are set to end over the next two months. The hospital will also close multiple outpatient clinics, including cardiology, as it reduces service lines tied to declining volumes and financial losses.
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