Here are three major companies that have filed for bankruptcy or announced intentions to file for bankruptcy since Aug. 28;
1. Emergency medicine management company American Physician Partners has voluntarily filed for Chapter 11 protection under the U.S. Bankruptcy Code. The move follows a July 17 announcement that the company was closing and planning to transition its hospital contracts. As of July 31, APP had transitioned all its clients to other strategic emergency medicine companies or insourced with the respective hospitals or health systems.
2. Babylon Health, the London-based digital healthcare firm that was once valued at nearly $2 billion, filed for Chapter 7 bankruptcy of its two subsidiaries and looked to complete a sale of its U.K. businesses. The company had achieved success and signed lucrative remote care contracts even before the COVID-19 pandemic. In 2021, the company faced questions about its corporate governance and patient safety by U.K. regulators and clinicians. By 2022, the company was beginning to lose contracts with the National Health Services.
3. Rite Aid is preparing to file for Chapter 11 bankruptcy this fall as it faces numerous lawsuits over its alleged role in the opioid epidemic. A Chapter 11 bankruptcy filing could alleviate the pharmacy chain's $3.3 billion debt and legal costs for ongoing opioid lawsuits from private plaintiffs, states and the federal government.