Senior care bankruptcy filings have remained relatively steady over the past two years, with most quarters recording three or fewer cases, according to a report from Gibbins Advisors. The first quarter of 2025 was a notable exception, however, which saw seven filings.
During the first year of COVID, filings were unusually low at just four, thanks to government funding that bolstered liquidity even as occupancy levels fell. Post-COVID pressures, including rising costs, workforce shortages and slow occupancy recovery, drove a higher number of bankruptcies in 2023.
In collaboration with the National Investment Center for Seniors Housing & Care (NIC), Gibbins Advisors prepared this senior care subsector report as a deeper dive within its broader healthcare Chapter 11 bankruptcy research.
The analysis reviews filings from 2019 through 2025 for cases with liabilities of at least $10 million, examining trends over time and breaking bankruptcies down by size and segment, including continuing care retirement communities (CCRCs), skilled nursing facilities (SNFs) and senior living communities such as independent living, assisted living and memory care.
For perspective, NIC estimates there are roughly 25,000 institutional investment-grade senior housing and care properties in the U.S., operated by several thousand companies. Over the past seven years, the senior care sector has seen just 81 Chapter 11 filings — an average of 12 per year — representing a small fraction of the overall market.
When viewed alongside total healthcare Chapter 11 filings since 2023, senior care bankruptcies generally track broader healthcare trends, with some exceptions. The proportion of senior care cases relative to total healthcare filings rose during the COVID years (2021–2022), though that occurred at a time when overall healthcare bankruptcies were unusually low. Between 2019 and 2025, senior care filings ranged from 10 to 15 per year. In 2025, the sector recorded 12 filings, up modestly from 10 in 2024 and broadly consistent with the average over the prior four-year period, the report said.
From 2019 to 2025, senior care accounted for roughly 24% of all healthcare sector Chapter 11 filings, a share comparable to that of the pharmaceutical sector. Hospitals represented the next-largest category, accounting for about 13% of filings, followed by clinics and physician practices and medical equipment and supplies companies, each comprising roughly 11% of filings. The remaining 18% fell into an "other" category, encompassing healthcare businesses not captured by the categories above.
The size of bankruptcy filings in the senior care sector, measured by liabilities at the petition date, shows that nearly 98% of cases from 2019 through 2025 involved companies with liabilities of less than $500 million. Only two filings during this period exceeded $500 million, the report said.
The distribution of case sizes mirrors the structure of each segment. CCRCs tend to carry larger debt loads, with over 60% of their filings falling in the $100 million to $500 million range, reflecting their multilevel care models and development-related obligations.
Senior living bankruptcies largely involve mid-sized enterprises, with 90% of filings in the $10 million to $50 million range. SNF bankruptcies span a mix of sizes, with approximately 27% exceeding $100 million in liabilities and 62% in the $10 million to $50 million range, reflecting a combination of large multi-state operators and smaller regional providers, according to Gibbins Advisors.
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