Bankruptcies have risen this year as staffing shortages and climbing interest rates continue to challenge hospitals, health systems, physician staffing groups and other healthcare companies.
Here are five hospitals that have filed or plan to file for bankruptcy this year:
1. Mercy Iowa City has filed for Chapter 11 bankruptcy in the Northern District of Iowa, accordign to an Aug. 7 news release shared with Becker's. The filing includes a reference to a letter of intent between Mercy Iowa City and the State of Iowa that outlines a plan to transition the hospital to become part of UI Health Care. The affiliation requires approval from the university board of regents, state of Iowa, and the bankruptcy court.
2. Martin General Hospital, a 49-bed facility in Williamston, N.C., suspended operations Aug. 3 and plans to file for bankruptcy. Martin General, which lost $13 million in 2022, cited financial challenges related to declining population and utilization trends as reasons for the decision.
3. San Benito Health Care District, the board overseeing Hollister, Calif.-based Hazel Hawkins Memorial Hospital, voted May 22 to file for Chapter 9 bankruptcy. Modesto, Calif.-based American Advanced Management signed a letter of intent in August to operate the hospital.
4. Montebello, Calif.-based Beverly Hospital filed for Chapter 11 bankruptcy April 19. The hospital secured $13 million in financing to keep operating as it looked for a buyer. Hospital officials said rising costs outpacing government reimbursement rates were to blame for the situation. Beverly has unsuccessfully attempted to merge with three health systems.
5. Madera (Calif.) Community Hospital filed for Chapter 11 bankruptcy March 10. The hospital officially closed at midnight Dec. 30, after Livonia, Mich.-based Trinity Health's plan to buy the hospital fell through. The hospital reached an initial agreement in July to have Roseville, Calif.-based Adventist Health take over operations.