TL/DR –
Omni Health Services, a healthcare company that operates clinics across the Mid-Atlantic, has filed for Chapter 11 bankruptcy. This comes in the wake of the pandemic which greatly affected the company’s financial situation, leading to the closure of underperforming locations and layoffs. There has been a trend of healthcare companies facing financial distress, with 79 filings for bankruptcy in 2023 and 57 in 2024, according to a report by consulting firm Gibbins Advisors.
Health Care Firm Files for Bankruptcy Amid Financial Distress
Joining the growing list of health care providers filing for Chapter 11 bankruptcy, Omni Health Services, Inc. has sought court protection to restructure its mounting debts. The company, based in Colmar, operates numerous clinics in the Mid-Atlantic, offering outpatient therapy, intensive behavioral programs, and other mental health services. Its assets and liabilities fall between $1 million and $10 million, and it lists between 100 and 199 creditors.
An Omni Health Services spokesperson commented that the pandemic amplified ongoing financial pressures, necessitating the closure of underperforming locations, lay-offs, lawsuits, and ultimately the need to file for Chapter 11 protection.
Industry Trend: Bankruptcy Filings in Health Care Sector
Even though bankruptcy filings have slowed in 2025, important health care companies continue filing for court protection. Factors like economic challenges and recent policy changes might trigger instability for American providers. A mid-year report from Gibbins Advisors highlights 79 health care bankruptcy filings in 2023 and 57 in 2024, significantly above the 2019–2022 average of 42 filings per year. The firm’s latest research identifies 12 new filings in the third quarter of 2025, keeping the year’s total about 16% below last year.
Many high-profile, financially distressed health care providers have sought protection in 2025. For instance, S&P Global Market Intelligence identified three health care companies with assets exceeding $1 billion that filed for Chapter 11 protection in the first seven months of 2025.
Statements from Key Figures
An Omni Health Services spokesperson said via email, “We had to close nine clinics in the past few months due to massive losses. We aim to stabilize our remaining nine clinics, restructure our debts and continue providing quality health care services.”
Lawton Robert Burns, author of The U.S. Healthcare Ecosystem, warned in August, “There’s a lot of wreckage out there along the highway of health care.” He added, “There haven’t been any positive developments or reasons why we should think the healthcare sector is going to be on stronger footing in 2025 and 2026.”
What’s to Come?
Gibbins Advisors predicts a potential rise in health care bankruptcies in Q4 and warns of a “tougher road ahead for providers” due to recent policy shifts, such as the spending cuts included in the One Big Beautiful Bill Act.
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