Why 30 ASCs, physician practices have closed in 2026

At least thirty physician practices and ambulatory surgery centers have shuttered or announced closures in the first half of 2026, a pace that reflects mounting pressure on independent practices.

Insurance reimbursement that no longer covers the cost of care, staffing shortages that leave practices with a single physician and rural markets that can’t attract new providers are among the primary drivers. Consolidation is a compounding factor, with several closures being practices absorbed into health systems.

Here is why 30 practices and facilities across more than 20 states have closed, as reported by Becker’s so far in 2026.

Note: This list is not exhaustive.

1. The Urology Group – Central Indiana permanently closed June 30, citing the departure of physicians who left the practice with only one full-time urologist.
2. Ogdensburg, N.Y.-based North Star Health Alliance is closing its North Country Orthopaedic Ambulatory Surgery Center and its North Country Orthopaedic Group, both in Watertown, N.Y., in the next 30 to 90 days. The closures are part of North Star’s ongoing restructuring and operational stabilization efforts.
3. West Tennessee Medical Group Gastroenterology, part of Jackson-based West Tennessee Healthcare, closed July 1 without providing a reason.
4. Linwood, N.J.-based Connolly Dermatology offices across New Jersey, the Philadelphia area and Delaware shuttered after employees said the practice stopped paying its staff.
5. Catholic Health System is closing Sterling Surgical Center in Orchard Park, N.Y., citing declining patient volume, and relocating its surgical services to other ASCs in its network. Sterling Surgical Center, which opened in 2002 with a focus on outpatient ophthalmology and gastroenterology procedures, has seen volume decline to low levels over the past 12 months.
6. Hoskinson Health and Wellness, a rural clinic in Gillette, Wyo., will close July 31, three years after opening, citing financial unsustainability.
7. The Surgery Center of Southern Oregon in Medford closed June 30 after Asante and the surgery center withdrew their requests for both standard approval and an emergency exemption from Oregon Health Authority’s Health Care Market Oversight review, ending any path for Asante to become the facility’s sole owner. 
8. An Optum-operated OB-GYN practice in Rock Hill, N.Y., closed July 1, and three of the practice’s four physicians are relocating. 
9. MaineGeneral Eye Center in Fairfield will close July 31, citing losses of up to $1 million annually, driven by low insurance reimbursement rates and uncertainty over state and federal health programs.
10. Arkansas Valley Surgery Center in Canon City, Colo., permanently closed April 24. The AmSurg-affiliated ASC offered gastroenterology, bariatric, general surgery, urology, podiatry and orthopedic procedures.
11. Baptist Health Fort Smith (Ark.) plans to close its cardiology clinic and end related services as part of a broader restructuring effort.
12. MercyOne closed its South Des Moines (Iowa) Family Medicine and Urgent Care office on June 26, citing staffing shortages and government reimbursement rates that do not cover the full cost of care.
13. Columbia-based Missouri Heart Center shut down May 6 as Boone Health moves forward with a new cardiology clinic.
14. Cayuga Primary Care Dryden, part of Centralus Health, closed May 1. The clinic, which had operated since 1955, cited staffing challenges and the cost of maintaining an aging facility as reasons for the closure.
15. Four Washington state sleep diagnostic centers closed following the sentencing of their physician owner on federal fraud charges. Central Washington Sleep Diagnostic Center closed its four locations after Eric Haeger, MD, was sentenced to 366 days in federal prison for purchasing recalled continuous positive airway pressure and bilevel positive airway pressure devices, attempting to remove defective foam components and billing Medicaid for the adulterated equipment as new.
16. A Fairmont, Minn., orthopedic surgeon closed his independent practice after 36 years, citing the cumulative impact of the Affordable Care Act, COVID-19 and increasing consolidation in the local healthcare market.
17. A family medicine clinic in Trenary, Mich., permanently closed April 28, citing declining demand for services.
18. An orthopedic practice in Collierville, Tenn., abruptly shut down in March. 
19. A Greenville, N.C.-based women’s health clinic closed June 1 after nearly four decades of operation. Three of the physicians at Greenville Women’s Care — Esther Smith, MD, Paige Fisher, MD, and William Brown, MD — will continue seeing patients at other Physicians East locations. 
20. The Advanced Surgery Center in Omaha, Neb., which offered procedures including total joint replacement, orthopedics, pain management, podiatry and cataract removal, closed March 30.
21. An OB-GYN practice in Watertown, N.Y., affiliated with the financially troubled North Star Health Alliance closed April 10. Comprehensive Women’s Health Services is owned by Carthage Area Hospital and operated by North Star. The practice’s sole gynecologist, Walter Dodard, MD, said hundreds of patients have been notified and encouraged to find a new provider.
22. Downeast OB-GYN in Bangor, Maine, which opened in 1994, closed July 2. Owner Christopher Ramset, MD, said the primary reason for the closure was an inability to recruit new physicians to the private practice.
23. Enterprise (Ala.) Women’s Center closed March 31 after 32 years in operation due to staffing shortages. The practice was operating with one OB-GYN and one nurse practitioner. 
24. Optum, UnitedHealth Group’s healthcare services arm, is closing Family Medical Group Northeast, a clinic in Portland, Ore. The clinic, which has provided care for more than 30 years, was acquired by Optum in 2021.
25. Baltimore-based LifeBridge Health shuttered its Ellicott City (Md.) Ambulatory Surgery Center due to low procedure volume. The freestanding ASC’s closure affected 23 employees and took effect between March 7 and April 6.
26. Wellsville, N.Y., pediatrician Zahi Kassas, MD, shuttered his practice May 1. After more than 25 years serving the community, Dr. Kassas will transition into a more limited role focused on hospital-based pediatric services and the care of a select group of complex pediatric patients.
27. Uplift Family Medicine, located in Sherman, Texas, permanently closed Jan. 31 after filing for bankruptcy.
28. Fatade Health & Medical Center in Martinsville, Va., closed 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. 
29. 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.
30. The Gray (Maine) Family Health Center closed March 6, with two providers relocating to another practice in the state.

At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.