Healthcare companies are currently working through a “COVID hangover” as they deal with factors like continually high labor costs and staffing and supply shortages, according to the report.
Companies are also facing cost increases amid inflation, low returns on invested assets and interest rate hikes — all of which can strain a company’s cash flow and access to capital.
From 2019 to 2022, senior care companies accounted for about 26% of healthcare company bankruptcy filings, while pharmaceutical companies accounted for about 23%.
