Landmark Holdings Hospital System Declares Bankruptcy, No Hospital Closures Planned

Landmark Holdings, a Naples, FL-based hospital operator, has filed for Chapter 11 bankruptcy, citing rising labor and pharmaceutical costs and stagnant Medicare reimbursements. Despite these financial challenges, the company does not plan to close any of its six hospitals. Instead, it intends to continue operations during the restructuring process.

Landmark’s Financial Challenges

Landmark Holdings owns and operates five hospitals in Georgia and Missouri and one in Florida: Landmark Hospital of Southwest Florida in Lehigh Acres. The hospitals provide long-term acute care for patients who need extended treatment before transitioning to rehab, skilled nursing, or home care.

Landmark’s revenue increased by over $7 million in 2023, reaching $79.4 million. However, expenses also surged:

• Contract labor costs have risen by 229% since 2020.
• Salaries, wages, and benefits for skilled nurses increased by 29%.
• Pharmaceutical costs continued to climb between 2022 and 2024.

Landmark cited these factors and “plateaued” reimbursement rates after the COVID-19 pandemic as key reasons for its financial struggles. The company commented that some hospitals were “more severely impacted by these developments due to geography and patient mix.”

Efforts to Avoid Bankruptcy

In an attempt to remain financially stable, Landmark implemented several cost-cutting measures, including:

• Layoffs at its Cape Girardeau, Missouri business office.
• Reducing HR and accounting staff in Florida.
• Closing a Florida office and outsourcing hospital billing and collections.

Despite these efforts, Landmark reported $70 million in assets and $86 million in liabilities at the time of filing. The company’s debts include:

• A $30 million loan from Amerant Bank.
• $13 million in outstanding lease payments to real estate investment trusts that own its hospital properties through a master lease arrangement.

Landmark employs approximately 625 workers, 340 of whom are full-time employees.

What’s Next for Landmark Holdings?

The company plans to seek new capital providers or owners for its hospitals. According to the bankruptcy filing in the U.S. Bankruptcy Court for the Middle District of Florida, Fort Myers Division, Landmark will continue operations despite its restructuring plans. The company stated:

“Importantly, Landmark has sufficient cash on hand to fund ongoing operations of the hospitals to ensure that their patients have continued access to critical care.”

The bankruptcy filing follows a broader trend of financial instability among hospital systems. While bankruptcies were slightly down in 2024 compared to 2023, filings remain higher than pre-pandemic levels.

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