Health care is on many people’s minds lately as Congress struggles to find a solution to the expiring Affordable Care Act subsidies for individuals and families, which has led to a stalemate between Republicans and Democrats and a shutdown of the federal government for two weeks so far.

Everyone is looking for money for health care, whether it’s patients, health care providers, insurance companies, and members of Congress.

When it comes to health care providers, several are facing financial distress, are in dire need of cash, and need to seek out-of-court restructurings or in-court bankruptcy filings to help solve their problems.

The economic challenges causing financial distress include increased insurance liability premiums, a decline in reimbursement rates, and rising labor, product, and operating costs.

Senior care facility operator annual bankruptcy filings:

• 2023 annual senior care facility operator bankruptcy filings: 15
• 2024 annual senior care facility operator bankruptcy filings: 11
• 2025 annual senior care facility operator bankruptcy filings: 16 (projected)

Bankruptcy filings in the health care industry numbered 79 cases in 2023 and 57 in 2024, after averaging 42 bankruptcy filings each year from 2019 through 2022, according to Gibbins Advisors.

Senior care companies accounted for a significant portion of those bankruptcies with 15 firms filing in 2023 and another 11 filing in 2024.

Operators of long-term care facilities can expect an increase in bankruptcy filings in 2025, with 16 projected for the year by Gibbins, after 8 companies filed for bankruptcy protection in the first half of the year, Senior Housing News reported.

Huge senior care facility chains file for bankruptcy

A huge senior care facility chain is among those first eight debtors, as Pacifica Senior Living LLC, which operates about 93 care homes nationwide, on March 24, 2025, filed for Chapter 7 liquidation, with some of its facilities reportedly set to evict residents and close.

The senior care facility operator faced legal judgments as it settled a lawsuit in 2024 for $2.5 million involving its Healdsburg Senior Living facility in Healdsburg, Calif., the Santa Rosa Press Democrat reported.

More bankruptcy:

• 34-year-old casual dining chain files for Chapter 11 bankruptcy
• Major seafood company files for Chapter 11 bankruptcy
• 55-year-old women’s fashion company files Chapter 11 bankruptcy

Pacifica Senior Living, which was founded in 1978, operated independent-living, assisted-living, memory-care, respite-care, skilled-nursing, and adult-care facilities.

Months later, giant health care facilities operator Genesis Healthcare Inc., which operates 175 facilities in 40 states, filed for Chapter 11 bankruptcy on July 11, seeking a sale to affiliates of a prepetition lender.

Cypress Skilled Nursing reorganizing in bankruptcy

Finally, troubled skilled nursing facility chain operator, Cypress Skilled Nursing LLC, filed for Chapter 11 protection to reorganize its businesses, according to RK Consultants.

The Atlanta-based operator of nine skilled nursing facilities in Georgia filed its petition in the U.S. Bankruptcy Court for the Northern District of Texas on Oct. 13, listing $1 million to $10 million in assets and liabilities in its petition.

The debtor did not state a specific reason in its petition for filing for bankruptcy.

Cedar Valley facility gets a 5-star rating

The skilled nursing facility operator faced scrutiny from regulators for operations at seven of its facilities. The company’s best facility, according to Medicare.gov is its Cedar Valley Nursing & Rehabilitation Center in Cedartown, Ga., which received a 5-star overall rating out of 5 stars.

The company also received a 3-star rating for its Pine Knoll Nursing & Rehabilitation Center in Carrollton, Ga.

Cypress Skilled Nursing LLC facilities:

• Cedar Valley Nursing & Rehabilitation Center in Cedartown, Ga.
• Pine Knoll Nursing & Rehabilitation Center in Carrollton, Ga.
• Carrollton Nursing & Rehabilitation Center in Carrollton, Ga.
• Chestnut Ridge Nursing & Rehabilitation Center in Cumming, Ga.
• Haralson Nursing & Rehabilitation Center in Bremen, Ga.
• Roswell Nursing & Rehabilitation Center in Roswell, Ga.
• Social Circle Nursing & Rehabilitation Center in Social Circle, Ga
• University Nursing & Rehabilitation Center in Athens, Ga.
• Woodstock Nursing & Rehabilitation Center in Woodstock, Ga.

Cypress Skilled Nursing received a 1-star rating for each of its other seven facilities, including Carrollton Nursing & Rehabilitation Center in Carrollton, Ga.; Chestnut Ridge Nursing & Rehabilitation Center in Cumming, Ga.; Haralson Nursing & Rehabilitation Center in Bremen, Ga.; Roswell Nursing & Rehabilitation Center in Roswell, Ga.; Social Circle Nursing & Rehabilitation Center in Social Circle, Ga.; University Nursing & Rehabilitation Center in Athens, Ga.; and Woodstock Nursing & Rehabilitation Center in Woodstock, Ga.

The company’s Woodstock facility has also been cited for abuse, according to Medicare.gov.

Related: Popular beverage chain franchisee files for Chapter 11 bankruptcy