Chapter 11 bankruptcy filings increased 33% in Q1 of 2026 compared with Q4 of 2025, according to a report released April 29 by Gibbins Advisors.
The data covered cases with liabilities of at least $10 million across healthcare and medical sectors from January 2019 to March 2026, and found that physician practices, clinics and senior care led Q1 bankruptcy activity.
Here are five other takeaways from the report:
1. Filings rose from 9 to 12 cases quarter-over-quarter, returning to the 7-year historical quarterly average of approximately 12.4 filings. Annualized, 2026 is on pace for 48 filings — modestly above 2025’s full-year total of 45.
2. Clinics and physician practices logged four filings in Q1 2026 — their highest quarterly total in over a year — matching senior care’s four filings. Together the two sectors accounted for two-thirds of all Q1 healthcare bankruptcy volume.
3. Looking at the full period from 2019 through Q1 2026, senior care accounts for 24.2% of all healthcare Chapter 11 filings and pharmaceuticals account for 23.3% — together comprising nearly half of all cases. Hospitals (13.1%), clinics and physician practices (11.4%), and medical equipment and supplies (10.3%) round out the major subsectors.
4. Cases with liabilities between $10 million and $50 million made up approximately two-thirds of Q1 2026 filings — consistent with recent years.
5. Filings with more than $500 million in liabilities rose to 2 cases in Q1 2026, up from zero in Q4 2025. Cases in the $100 million–$500 million range held flat at 1 filing. Larger cases (over $100 million combined) were consistent quarter-over-quarter at 3 filings in both Q4 2025 and Q1 2026.
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