The elevated price of chapter filings by well being care suppliers, organizations, and hospitals over the earlier two years has slowed down in 2025 with lower than one-third as many petitions filed to this point this yr, primarily based on knowledge from Becker’s Hospital Assessment.
The well being care trade has recorded no less than 18 chapter filings this yr as of the primary week of October 2025.
That is considerably fewer than the 57 filings for the yr in 2024 and 79 instances in 2023. It is also fewer than half the annual submitting common of 42 annually from 2019 via 2022, in accordance with Gibbins Advisors.
Yearly well being care chapter filings:
- Well being care bankruptcies, Jan.-Oct. 2025: 18
- Well being care bankruptcies, 2024: 57
- Well being care bankruptcies, 2023: 79
Among the many main filings this yr has been well being care services operator Genesis Healthcare Inc., which filed for Chapter 11 chapter on July 9, with over $708 million in secured debt and over $1.5 billion in unsecured debt.
Additionally, large well being care providers supplier ModivCare Inc. and 70 associates filed for a prearranged Chapter 11 chapter on Aug. 20, in search of to cut back their $1.4 billion in debt and hand their belongings to prepetition lenders, dealing with an unsustainable capital construction, deteriorating liquidity, and trade headwinds.
Navidea Biopharmaceuticals has filed for chapter.
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Navidea Biopharmaceuticals information for chapter safety
And now, troubled biopharmaceutical firm Navidea Biopharmaceuticals Inc. has filed for Chapter 11 safety, dealing with monetary misery after years of litigation, provide chain points, and a current risk of an involuntary chapter petition.
The Columbus, Ohio-based debtor listed $1 million to $10 million in belongings and $10 million to $50 million in liabilities in its Subchapter V petition filed on Oct. 1. The corporate mentioned in it submitting that it had $1.2 million in belongings and $12.8 million in liabilities as of Aug. 31, 2025.
The corporate’s largest unsecured collectors embrace Winstead PC, owed over $566,000; Fredrickson & Byron P.A., owed over $479,000; and WorldCare Clinic LLC, owed over $255,000.
Navidea seeks debtor-in-possession financing
Navidea filed a movement in search of approval of as much as $940,000 in debtor-in-possession financing from its secured creditor John Kimball Scott Jr., a member of the corporate’s board of administrators, who’s owed $7.76 million in debt.
The biopharmaceutical firm develops precision drugs with immuno-targeted merchandise, together with Lymphoseek, a first-of-its-kind product that assists within the prognosis of metastatic cancers which will have unfold to lymph nodes and likewise assists within the staging course of.
Navidea sells rights to a key drug
Navidea reached an settlement in November 2016 to promote its North American Lymphoseek belongings to Cardinal Well being. The deal closed in March 2017, for $80 million upfront.
Subsequently, the biopharmaceutical firm accepted a lump sum of a further $17 million, discounted money movement fee in lieu of future royalties of an estimated $165 million on future Lymphoseek gross sales.
Navidea’s sale of Lymphoseek particulars:
- North American Lymphoseek belongings, $80 million upfront to Navidea, closes March 2017.
- $17 million fee in lieu of future royalties estimated at $165 million, earlier than February 2018.
The sale excluded all belongings, properties, and rights outdoors of North America.
Capital Royalty Companions II LP had supplied the debtor with a $50 million mortgage in 2015, which grew to $66 million after a default and litigation, in accordance with court docket papers. Navidea paid the lender $59 million after the sale to Cardinal Well being was accomplished in December 2017.
Litigation, failed trials, involuntary chapter threats drive Chapter 11
Navidea was additionally engaged in lawsuits and countersuits with former CEO Dr. Michael Goldberg, from February 2019 to December 2024.
Moreover, prices from failed medical trials, world provide chain points, and threats of doable involuntary chapter filings prompted Navidea to file for Chapter 11 safety.
Associated: 79-year-old key well being care supplier information Chapter 11 chapter
