On October 3, 2025, White-Wilson Medical Center—one of Northwest Florida’s most prominent and oldest healthcare providers—filed for Chapter 11 bankruptcy.
The group’s debts ($10–50 million) were far bigger than its assets ($1–10 million), putting it in a critical financial crisis. Bankruptcy Judge Karen K. Specie took over the case, marking a turning point for this 79-year-old medical practice.
Legacy Provider
White-Wilson started in 1946 when Dr. Henry White opened his first clinic out of his house in Fort Walton Beach.
Dr. Joseph Wilson joined in 1952, and the practice steadily grew into the region’s leading multi-specialty medical group.
Today, it runs six clinics in Okaloosa, Walton, and Santa Rosa counties, employing over 300 people and 80+ healthcare providers across more than 15 specialties.
Industry Under Pressure
White-Wilson’s bankruptcy isn’t an isolated case.
Across America, the number of hospital and medical practice bankruptcies has jumped—79 cases in 2023 and 57 in 2024, well above previous years.
Small and independent medical groups, particularly those in rural areas, have been hit hard by rising expenses and flat insurance payments.
The Medicare Squeeze
One primary reason for the financial trouble is Medicare. In 2025, the government once again lowered its payment rates to doctors.
Compared to 2001, Medicare now pays about 26% less per medical treatment when factoring in inflation.
Meanwhile, the cost of running a medical practice—wages, supplies, vaccines, and new technology—keeps climbing, rising about 11% in 2025 alone.
This growing gap makes it harder for clinics to rely on Medicare.
Restructuring, Not Closing
White-Wilson leaders say they are not shutting down.
Instead, they’re reorganizing through bankruptcy, planning to keep all clinics open, paying staff, and serving patients throughout the court process.
CEO Dr. Kenneth Persaud said they are using bankruptcy to reduce debt and “strengthen our foundation” so they can keep serving the Emerald Coast long-term.
Community Impact
The bankruptcy affects six Northwest Florida communities: Fort Walton Beach, Crestview, DeFuniak Springs, Destin, Niceville, and Navarre.
White-Wilson is the largest multi-specialty provider and one of the top ten employers in Okaloosa County, making it vital to local healthcare.
Already, patients in certain areas face trouble finding doctors and affordable care. Keeping White-Wilson’s clinics open is essential as more people struggle to access them.
Patient Assurance
Leaders at White-Wilson stress that patient care will continue without disruption. Dr. John C. Dali said, “Our goal remains to keep our patients healthy…as we have always done for the past 79 years.”
Clinics keep regular hours, and specialist and weekend services continue.
White-Wilson’s special “Patient-Centered Medical Home” status—showing its commitment to coordinated care—remains in effect even during restructuring.
Labor Cost Crisis
The cost of hiring and keeping doctors, nurses, and other healthcare staff is the main reason many practices are under pressure.
In 2025, two-thirds of practice managers say labor costs are their biggest problem. Wage inflation is high as hospitals compete for fewer available healthcare professionals, with nurse and doctor shortages worsening yearly.
To keep pace with labor market demands, healthcare organizations face a projected $170 billion in additional costs by 2027.
Operating Expense Spiral
It’s not just wages—everything costs more.
Medicine and medical supplies are up by double digits, and technology upgrades and insurance are more expensive.
In 2025, nearly every medical group in America will see higher operating expenses than in the year before. These rising costs consume clinics’ resources to treat patients and pay staff.
Job Preservation Focus
Unlike many bankruptcies, White-Wilson’s reorganization focuses on saving jobs instead of cutting them.
They’ve asked the court for permission to pay wages and keep benefits going during the process, so all employees should remain on payroll for now.
This matches Chapter 11’s aim: fix the finances without closing clinics or laying off staff.
Previous Cost-Cutting
White-Wilson’s October 2025 bankruptcy filing wasn’t the organization’s first attempt to address financial pressures.
In December 2023, the medical center laid off 36 employees—approximately 8% of its workforce—in what CEO Dr. Persaud described as necessary restructuring “to protect our ability to provide care to our patients and our community.”
The eliminated positions affected business operations areas, including coding, insurance, and call center roles, with no clinical or direct patient care positions impacted.
That earlier workforce reduction, White-Wilson’s second in its 77-year history, proved insufficient to resolve the underlying financial challenges that necessitated bankruptcy protection nearly two years later.
Legal Representation
For the bankruptcy, White-Wilson hired experienced legal counsel (Johnson, Pope, Bokor, Ruppel & Burns, LLP) to guide them through the court.
They say they have enough regular revenue to pay some of their debts over time, if allowed to keep running clinics.
A court hearing is set for November 19, 2025, to decide on operational details like staff wages and use of funds.
Reorganization Timeline
Chapter 11 restructurings happen in steps: filing for court protection, running clinics under court oversight, getting input from creditors (suppliers and banks), and submitting a turnaround plan.
This process can take months or even a year.
If creditors agree and the court approves the plan, the organization gradually pays off debts while staying open.
Florida Healthcare Landscape
White-Wilson joins a troubling roster of Florida healthcare providers seeking bankruptcy protection in 2025. Landmark Holdings of Florida filed Chapter 11 in March, encompassing six long-term acute care hospital facilities.
The Villages Health System filed in July, facing $361 million in Medicare overpayments. Prospect Medical Holdings, though California-based, filed in January, affecting hospitals across multiple states, including Connecticut, Pennsylvania, and Rhode Island.
According to Yahoo Finance, Florida ranks as the second most financially distressed state in America based on bankruptcy filing trends.
These cascading failures reflect systemic pressures threatening healthcare access across the state, particularly affecting rural and underserved communities dependent on independent providers.
Future at Stake
Experts say it’s uncertain if White-Wilson can successfully reorganize and stay open.
Bankruptcy for medical groups can be complicated and take a long time, with some providers failing to make it through.
Others, especially with well-designed plans and good cash flow, have improved their finances and returned to normal.
Everything depends on keeping patients, managing costs, and negotiating fair repayment terms with creditors.
Policy Pressures
All of these financial struggles are putting new pressure on Congress.
Lawmakers are debating reforms that would boost Medicare payments to keep up with inflation better.
Some bills propose eliminating annual payment cuts and guaranteeing cost-of-living increases for doctors.
The outcome of these bills could make the difference for physician groups trying to survive in a tough economy.
Industry Ripple Effects
A clinic bankruptcy affects more than doctors and patients—it also hits suppliers, labs, pharmacy distributors, real estate landlords, and even local banks.
Private equity investors have made some medical groups more financialized and riskier, while rising default rates are starting to worry lenders used to seeing healthcare as a steady business.
Public Reaction
Locals have voiced their concern about losing access to care, taking to social media to ask about appointments and whether their doctors will stay.
Some confused “bankruptcy” with immediate closure, but experts explain that Chapter 11 allows services to continue during the financial fix.
Policy groups warn that these bankruptcies hit the most vulnerable people hardest, especially in rural areas.
Historical Precedent
Bankruptcies are not new to healthcare. In 2025 alone, Genesis HealthCare and ModivCare also filed for relief with debts in the billions.
Many larger groups with broad patient bases and sound planning have managed to reorganize and survive, while smaller, less diversified practices often shut down.
Having a plan and enough money to keep going during court proceedings greatly improves the chances of survival.
Survival Test
White-Wilson’s bankruptcy is a significant test for independent medical practices in the U.S. With government payments falling and costs rising, even groups with strong histories can end up in crisis.
Whether White-Wilson pulls through will depend on cooperation from creditors, decisions from the court, and continued support from local patients.
The result will show whether community-based clinics can still survive on their own—or if only large hospital networks will have the means to weather today’s healthcare storms.