Assessing the State of Healthcare Restructurings

Healthcare bankruptcy filings in the middle market dipped in 2025, yet increased costs, payer denials and tighter credit continue to pressure providers across the sector. In this episode of Counsel That Cares, Gibbins Advisors Principals and Co-Founders Clare Moylan and Ronald Winters and Holland & Knight Bankruptcy Partner Tyler Layne analyze restructuring trends in the industry and explain why filings alone can understate real-time distress. Reviewing Gibbins Advisors' annual report on healthcare bankruptcies, they assess how out-of-court workouts and receiverships, along with in-court Chapter 11 proceedings, shape outcomes, and detail how strained finances can limit options well before a filing. During the conversation, Ms. Moylan and Mr. Winters identify healthcare operational and financial indicators that depress performance: payer denials, pharmacy spending, stabilized but higher labor costs and thin margins that weaken liquidity. They evaluate why 2026 may be pivotal for organizations as policy shifts affect coverage, reimbursement and balance sheets. They then outline practical steps for healthcare leadership teams: model best and worst cases, prioritize capital, engage vendors early, strengthen denial management and time transformation investments to build resilience.