The U.S. health care sector has experienced turbulence in recent years, with rising operational costs, shifting insurance dynamics, and increased pressure on hospitals and care networks. However, bankruptcy trends in 2025 have seen a noticeable decline compared to previous years. Yet, the recent Chapter 11 filing by Glutality Global Holdings LLC has brought renewed attention to financial vulnerabilities within the industry—especially among companies specializing in high-risk patient support and remote monitoring.
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Bankruptcy Trends in the Health Care Sector
According to Becker’s Hospital Review and Gibbins Advisors, the number of health care-related bankruptcy filings has dropped significantly in 2025. The industry has recorded 19 filings through October 2025, compared to 57 in 2024 and 79 in 2023. This decline suggests a temporary stabilization, largely supported by enhanced marketplace subsidies under the Affordable Care Act.
Annual Healthcare Bankruptcy Filings
| Year | Bankruptcy Filings |
|---|---|
| 2025 (through October) | 19 |
| 2024 | 57 |
| 2023 | 79 |
| 2019–2022 (annual average) | 42 |
Despite this temporary slowdown, experts warn that filings may surge in 2026 if federal premium subsidies expire at the end of 2025. Without these subsidies, health insurance premiums are expected to rise sharply, potentially causing up to 4 million Americans to lose coverage. This would place intense financial strain on hospitals, clinics, and community health networks already operating on tight margins.
Impact of Subsidy Expiration on Patients and Providers
The Affordable Care Act subsidies under the American Rescue Plan Act and Inflation Reduction Act have historically reduced insurance premium costs by more than 50% for marketplace enrollees. If these subsidies are not extended beyond 2025:
- Millions may lose affordable health insurance
- Uninsured rates will rise sharply
- Hospitals may face increased uncompensated care expenses
- Rural and safety-net hospitals could face severe financial stress
- Bankruptcy filings may sharply increase across the industry
Glutality Global Holdings Files for Chapter 11 Protection
One of the newest companies to declare bankruptcy is Glutality Global Holdings LLC, a major health care technology and remote patient monitoring provider. Glutality and at least seven affiliated companies filed for Chapter 11 bankruptcy (Subchapter V) in the U.S. Bankruptcy Court for the Southern District of Florida.
Overview of Glutality Global Bankruptcy Filing
| Details | Information |
|---|---|
| Company Name | Glutality Global Holdings LLC |
| Filing Date | October 31, 2025 |
| Court | U.S. Bankruptcy Court, Southern District of Florida |
| Listed Assets | $100 million to $500 million |
| Reason for Filing | Internal disputes and financial restructuring |
| Affected Affiliates | Includes provider groups in multiple states |
While internal leadership disputes contributed to the filing, broader financial conditions likely played a role, especially as remote care models face increased competition and operational cost challenges.
What Does Glutality Do?
Founded in 2010, Glutality specializes in remote patient monitoring (RPM) systems for individuals with chronic illnesses—particularly diabetes. Its platform integrates cellular-enabled devices like:
- Glucose monitors
- Smart scales
- Connected blood pressure cuffs
These devices transmit patient health data directly to providers, enabling 24/7 monitoring and early detection of medical risks. This model is designed to reduce emergency hospitalizations and improve patient outcomes.
The bankruptcy does not necessarily mean patients will lose access to services. Under Chapter 11 reorganization, Glutality aims to restructure operations and continue providing care while resolving internal financial disputes.
Potential Effects on Patients and Providers
If restructuring is successful, Glutality may emerge stronger, with tighter operational management. However, challenges remain:
Possible Patient Impacts
- Potential disruptions in device distribution or software updates
- Temporary customer support delays
- Contract renegotiations with insurers or clinics
Possible Provider Impacts
- Delays in reimbursement billing systems
- Reduced onboarding capacity for new patients
- Transition planning for long-term care continuity
Health systems partnering with RPM services may need contingency plans to ensure uninterrupted monitoring of high-risk patients.
The Broader Outlook for 2026
If ACA subsidies expire in 2026, financial stress could extend far beyond RPM providers. Hospitals, physician networks, nursing homes, and rural clinics may face new bankruptcy risks as uninsured patient volumes grow.
Health policy decisions made in late 2025 will play a decisive role in shaping the stability of the U.S. health care system in 2026 and beyond.
FAQs
A – No, Chapter 11 allows the company to continue operations while restructuring.
A – Because millions may lose insurance coverage if ACA subsidies expire, increasing unpaid hospital care.
A – Rural hospitals and small community clinics with narrow financial margins are most vulnerable.
