Landmark Holdings of Florida filed for Chapter 11 bankruptcy protection on Sunday.
Landmark owns five long-term acute care hospitals in Missouri and Georgia, and provides management services to a sixth location in Florida. The company cited years of financial challenges, including high labor expenses, rising pharmaceutical costs and low reimbursement rates, that left it unable to meet its debt obligations, according to court documents filed Wednesday.
Related: Healthcare bankruptcies dropped in 2024
Debt obligations include a $30 million loan administered by Amerant Bank and about $13 million in deferred lease payments. Landmark's total unsecured debt, financing that is not backed by collateral, exceeds $20 million, according to the documents.
Still, the company said it has enough cash on hand to fund operations amid the bankruptcy process.
Landmark, which employs more than 600 people, listed assets and liabilities each between $50 million and $100 million in its bankruptcy filing. Among its top 10 creditors are real estate investment trust company Ventas, the Centers for Medicare and Medicaid Services and medical supplies company Medline Industries, according to the filing.
Landmark's filing is the latest in a slew of healthcare companies seeking Chapter 11 protection over the past couple of years. Five hospital groups filed for bankruptcy protection in 2024 and 12 groups filed in 2023, according to Gibbins Advisors data. Providers continue to struggle with inflation, labor shortages and payer contract disputes.
Two high-profile bankruptcies in the past year are those of Steward Health Care, which filed in May and involved more than 30 hospitals across eight states and a physician group, and Prospect Medical Holdings, which filed in January and involved 16 hospitals and related facilities across four states.
