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4 Healthcare Bankruptcies CEOs Tracked in 2024

Analysis  |  By Jay Asser  
   December 24, 2024

Providers and retailers alike had to navigate a restructuring process due to industry headwinds and challenges.

Healthcare organizations across all sectors were plagued by financial pressures this year, resulting in restructuring and bankruptcy for many.

Here are four notable bankruptcy cases CEOs followed in 2024:

Steward Health Care

Arguably the most visible bankruptcy in the industry this year was Steward Health Care’s, which saw the Dallas-based health system file for chapter 11 and put all 31 of its U.S. hospitals up for sale.

The company racked up debt from missed rent and vendor payments, putting a spotlight on the potential impacts of private equity-backed organizations.

While Steward has managed to sell some of its facilities, it has also struggled to divest many others, partly due to disagreements with its landlord, Medical Properties Trust.

Cano Health

The Miami-based primary care chain was another provider who dealt with its own financial turmoil.

Cano filed for bankruptcy and entered into a restructuring support agreement in February before emerging in the summer as a private company.

By exiting underperforming regions and refocusing on its Florida market, Cano said it was on track to hit its goal of $290 million in annualized cost reductions by the end of the year.

Rite Aid

Almost a year after filing for bankruptcy, Rite Aid also completed its financial restructuring in September with new leadership in place and a significant amount of debt cleared.

Matt Schroeder, who was most recently CFO since 2019, took the reins as CEO while the company slashed $2 billion of its debt and received approximately $2.5 billion in exit financing.

The Philadelphia-based drugstore retailer was forced to close hundreds of brick-and-mortar stores in the wake of its bankruptcy.

CareMax

Steward’s troubles didn’t just result in the health system’s bankruptcy, but contributed to CareMax entering restructuring, according to the Miami-based provider.

In announcing its bankruptcy, the company highlighted its relationship with Steward, which filed a motion to reject its contract with CareMax when it entered chapter 11.

Additionally, CareMax was hit by rising costs from leases, increasing interest rates, changes in regulatory reimbursement, inflation, escalating labor and operational costs, and high levels of medical utilization following the pandemic.

Jay Asser is the CEO editor for HealthLeaders. 


KEY TAKEAWAYS

Bankruptcy became an all-too-common path for companies in the past 12 months as they searched for financial sustainability.


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