Daily Briefing

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Around the nation: Healthcare bankruptcies climb in Q1


According to a new report from Gibbins Advisors, healthcare bankruptcies increased in the first quarter of 2026 after declining last year, in today's bite-sized hospital and health industry news from Illinois, New Jersey, and Tennessee. 

  • Illinois: Abbott has received 510(k) clearance and a CE mark for its Ultreon 3.0 device, which uses AI to support coronary imaging. The device combines optical coherence tomography (OCT) with AI to help doctors assess plaque blocking blood vessels, which can then guide their selection and placement of stents. The original Ultreon 1.0 device received regulatory approval in 2021, and since then Abbott has been working to improve the device. According to Abbott, the updated device uses a high-speed infrared light-based imaging technique to capture cross-sectional views of the coronary artery. These views are higher resolution than the ones captured by intravascular ultrasound with low or zero contrast. Ultreon 3.0 "accelerates the path to more confident clinician decision making" by providing physicians with more clarity, speed, and clinical insight, said Evan Shlofmitz, director of interventional cardiology at St. Francis Hospital and Health Center. (Taylor, MedTech Dive, 5/4)
  • New Jersey: According to a new study published in the Journal of Studies on Alcohol and Drugs, adding warning labels about cancer risk to alcoholic beverages could encourage people to decrease how much they drink. The current warning labels on alcohol have been in place since 1989 and include the risks of drinking during pregnancy or while driving/operating heavy machinery. The warnings also say alcohol "may cause health problems," but don't mention any specific conditions. In the study, researchers designed eight new warning labels that included a range of health harms associated with drinking alcohol, including cancer, liver disease, dementia, and hypertension. Researchers then had over 1,000 U.S. adults read the new labels in a randomized order, along with a control message and the current alcohol warning label. According to the researchers, the new warning labels did a better job at teaching participants something new about the health risks of drinking than the current ones. Almost all the new warning labels were more effective at motivating participants to cut back on their drinking, with cancer warning labels resonating the most. Katherine Keyes, an epidemiologist at Columbia University, said she welcomes efforts to better inform consumers about the health risks associated with alcohol. "I'm mostly concerned about making sure that the American people have accurate information so that they can make clear and conscious decisions, having all of the information available to them," Keyes said. "I think that's what the American public wants and what they deserve." (Godoy, NPR, 5/7)
  • Tennessee: According to a new report from Gibbins Advisors, healthcare bankruptcies increased in the first quarter of 2026 after declining last year. In 2025, there were 45 recorded bankruptcies from healthcare organizations, down from 79 just a couple years earlier. However, bankruptcy filings are on the rise again this year. In the first quarter of 2026, 12 healthcare companies with liabilities of at least $10 million filed for Chapter 11 bankruptcy protection, a 33% increase from the fourth quarter of 2025. Senior care firms and physician bankruptcies were behind most of the bankruptcies, with four filings each. If this pace continues, healthcare could see 48 bankruptcies in 2026, a 7% increase from 2025. According to analysts, some strategies companies can take to confront headwinds are portfolio reviews and budget and staffing models. Financial leaders should also seek help sooner rather than later. "Securing the early support of experienced financial and legal restructuring professionals can help to position the organization for the best possible outcome," Gibbins wrote in the report. (Gleeson, Fierce Healthcare, 5/11)

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