At least 14 hospitals, health systems, and health care companies have sought or exited bankruptcy protection so far in 2026, according to a running Becker's Hospital Review bankruptcy tracker updated September 22. The list ranges from a 231-bed safety-net hospital in Los Angeles to small rural hospitals in Alabama, Arkansas, Mississippi, Missouri, and Nebraska.
For patients, "bankruptcy" can sound like a closure notice. In these cases, it generally has not been. Every case on the current list involves a Chapter 11 or Chapter 9 filing, or a stated plan to file, and both chapters are designed to let an organization keep operating while it restructures its debts.
The count is not final. Becker's updates the list as new cases emerge, and it tallied 20 health care bankruptcies in 2025, up from 15 in 2024. A few entries filed in 2025 reached a turning point this year.
The Largest Cases on the 2026 List
The biggest by dollar exposure is Omnicare, CVS Health's long-term care pharmacy. A federal judge in Texas approved its Chapter 11 plan on September 17. Omnicare filed in 2025 amid a false claims case that ended in a judgment of nearly $950 million, and a court-approved settlement between CVS and the Justice Department will move forward under the plan.
Among hospitals, Pacifica Hospital of the Valley in the Sun Valley area of Los Angeles stands out. The hospital filed for Chapter 11 on July 4, listing $100 million to $500 million in liabilities. About 81% of its patients are covered by Medi-Cal, California's Medicaid program, and it treats more than 50,000 emergency patients a year, according to a CEO declaration reported by Healthcare Finance News.
The hospital entered bankruptcy with about $241,000 in unrestricted cash, and its operating account held just $1,222.48 on the filing date, according to Becker's.
In upstate New York, Ogdensburg-based North Star Health Alliance filed on February 10 along with affiliates including Carthage Area Hospital and Claxton-Hepburn Medical Center. Two national companies also filed: San Francisco-based Carbon Health, a hybrid primary care company, and Chicago-based GoHealth, a Medicare insurance marketplace. GoHealth said it planned to keep operating without interruption, while Carbon Health's prearranged restructuring sets a path to new ownership.
Some cases are ending. Jackson Hospital in Montgomery, Alabama, exited bankruptcy on September 14, about a month after signing a four-year agreement with Blue Cross Blue Shield of Alabama. Fort Walton Beach, Florida, physician group White Wilson Medical Center emerged through an acquisition by private equity firm Kain Capital.
Reorganization Versus Liquidation at the Bedside
Chapter 11 is known as a "reorganization" bankruptcy. The organization usually keeps operating, proposes a plan to pay creditors over time, and continues seeing patients. Chapter 9 works in a similar way for municipalities and other public entities, which is how Garden County Health Services in Oshkosh, Nebraska, and Greenwood Leflore Hospital in Mississippi filed.
Chapter 7 is different. It is a liquidation, in which assets are sold, and the business typically closes. None of the 14 cases on the list is a Chapter 7 filing, although a reorganization can still end in a sale or service cuts.
Federal law adds a patient protection. When a health care business files under Chapter 7, 9, or 11, Section 333 of the Bankruptcy Code requires the court to appoint a patient care ombudsman within 30 days unless it finds one unnecessary. The ombudsman monitors the quality of patient care and reports to the court at least every 60 days.
Reorganization is not a guarantee. In April, Greenwood Leflore warned employees it could close June 15 if it could not stabilize its finances, and it laid off 86 employees, about 17% of its workforce, while cutting several service lines.
Safety-Net and Rural Hospitals Carry the Heaviest Risk
Most hospitals on the list share a profile: small, independent, rural, or heavily dependent on public insurance. Mizell Memorial Hospital in Opp, Alabama, cited reimbursement shortfalls and rising workforce, pharmacy, and supply costs. Fitzgibbon Hospital in Marshall, Missouri, cited government payments below the cost of care and is pursuing a possible sale. Ouachita County Medical Center in Camden, Arkansas, announced plans in January to file for Chapter 11 amid about $8 million in debt.
Alabama accounts for three hospitals on the list. Atmore Community Hospital, a 49-bed facility, said it plans to file for Chapter 11 but has no plans to cut services, including its emergency department, or to close.
For towns with a single hospital, the stakes are direct. When a rural hospital trims service lines during restructuring, patients may need to travel much farther for the same care, a burden that falls hardest on older adults and people without reliable transportation.
Pacifica shows the urban version of the same strain. A hospital that relies on Medi-Cal for most of its patients has little room to absorb rising costs, and its emergency department serves tens of thousands of patients each year.
Steps for Patients When a Hospital Files
A bankruptcy filing alone does not cancel appointments. Patients should keep scheduled care unless the provider contacts them, and call the scheduling office if unsure.
Insurance is worth checking. Jackson Hospital's case was shaped partly by a long reimbursement dispute with Blue Cross Blue Shield of Alabama. Patients of any hospital in bankruptcy should confirm with their insurer that the facility remains in network before planned care.
It is also sensible to request copies of recent medical records, imaging results, and medication lists, especially if a sale or service cut is possible. People with outstanding bills should keep making agreed payments and ask whether billing contacts have changed.
The tracker will keep changing, since new filings, sales, and plan approvals can move a hospital on or off the list.
Key Questions Answered
How many health care organizations are in bankruptcy in 2026? Becker's Hospital Review counts 14 that have sought or exited bankruptcy protection so far this year, as of September 22.
Does bankruptcy mean my hospital will close? Not necessarily. Every case on the list involves a Chapter 11 or Chapter 9 reorganization, which lets organizations keep operating while restructuring debt.
What is the difference between Chapter 11 and Chapter 7? Chapter 11 is a reorganization in which the business keeps running. Chapter 7 is a liquidation in which assets are sold and the business usually closes.
Who protects patients during a hospital bankruptcy? Federal law generally requires the court to appoint a patient care ombudsman who monitors care quality and reports to the court at least every 60 days.
Which hospitals are on the list? They include Pacifica Hospital of the Valley in Los Angeles; Jackson Hospital, Mizell Memorial, and Atmore Community in Alabama; Greenwood Leflore in Mississippi; Fitzgibbon in Missouri; and Ouachita County Medical Center in Arkansas.
What should patients do if their hospital files? Keep scheduled appointments unless told otherwise, confirm insurance network status, and request copies of recent medical records.
Published by Medicaldaily.com
