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Bankruptcy duration and resolution in healthcare: Evidence from chapter 11 filings

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  • Robert Leach
  • Paul Newsom

Abstract

This study investigates the determinants of bankruptcy duration and resolution outcomes among publicly traded U.S. healthcare firms filing under Chapter 11. Using parametric survival models, we find that firm age and capital structure complexity are associated with longer proceedings, particularly among firms that ultimately liquidate. In contrast, prearranged filings, debtor‐in‐possession financing, and broader client reach shorten durations, especially in reorganizations. Governance disruptions such as fraud discovery and management turnover accelerate liquidation exits by eroding stakeholder confidence and reducing resistance to closure. The findings carry implications for policy design, creditor coordination, and institutional resilience in healthcare, where financial distress has systemic consequences for service continuity and public accountability.

Suggested Citation

  • Robert Leach & Paul Newsom, 2026. "Bankruptcy duration and resolution in healthcare: Evidence from chapter 11 filings," Review of Financial Economics, John Wiley & Sons, vol. 44(2), April.
    • Handle: RePEc:wly:revfec:v:44:y:2026:i:2:n:e70049
    DOI: 10.1002/rfe.70049
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    References listed on IDEAS

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