Physician practice closures continue to underscore the financial and regulatory pressures facing independent medicine — in just the past month, Becker’s has reported on five physician practices and clinics that have shut their doors across multiple states.
Physician practice bankruptcies climbed to their highest level in recent years in 2024 before dipping again in 2025, highlighting ongoing financial volatility for independent and small- to midsize physician groups. Becker’s reported 23 physician practice closures in 2025, reflecting continued strain from rising costs, reimbursement challenges and regulatory scrutiny.
Here are five physician practice and clinic closures:
- Johnson City, Tenn.-based primary care group State of Franklin Healthcare Associates shuttered four primary care clinics as it navigates financial challenges. Highlands Family Medicine in Johnson City; Pediatrics of Bristol (Tenn.); Abingdon (Va.) Primary Care; and OB-GYN Specialists of Kingsport (Tenn.) closed in January. The closures followed SOFHA’s December announcement that it received lending support from Ballad Health to help retire debt and remain independent.
- Fatade Health & Medical Center in Martinsville, Va., will close April 29 after nearly two decades of operation. The clinic, led by Ayokunle Fatade, DO, cited ongoing regulatory and law enforcement scrutiny as the reason for the closure. Dr. Fatade said the practice had faced pressure for the past seven years, referencing investigations, surveillance and actions by the Virginia Board of Medicine and a federal task force.
