“We’ve already observed an increase in bankruptcy filings among physician practices, and the 2.83% reduction in Medicare’s physician fee schedule for FY2025 will further strain this sector, impacting both physician groups and the hospitals that own them,” said Clare Moylan, principal at Gibbins Advisors, in a Jan. 23 press release. “Given these trends and our ongoing experience, we anticipate more physician practices will require restructuring support in 2025.”
Here are five things to know:
1. Physician practices or clinics healthcare bankruptcy filings from 2019 to 2024:
- 2019: 4
- 2020: 6
- 2021: 1
- 2022: 4
- 2023:6
- 2024: 10
2. The liability range for bankruptcy filings for physician practices or clinics from 2019 to 2024:
- $10-$50 million: 16
- $50-$100 million: 4
- $100-$500 million: 5
- More than $500 million: 6
3. Bankruptcies for physician practice surged in the fourth financial quarter of 2024. Here’s the breakdown of filings by quarter.
- Q1: 3 filings
- Q2: 2 filings
- Q3: 0 filings
- Q4: 5 filings
4. Although bankruptcy filings decreased by 28% from their peak in 2023, 2024 still recorded the second-highest number of filings in recent years.
5. A total of 57 healthcare-related bankruptcy cases were studied in 2024, down from 79 in 2023 but still above the 2019–2022 average of 42 filings per year.
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