Communities across the United States are facing a serious healthcare crisis in 2025. With major players in the medical field collapsing—such as Rite Aid, Walgreens, and Prospect Medical Holdings—access to basic health services is becoming harder for many Americans, especially in rural and underserved areas. Rising costs, sudden closures, and staff layoffs are leaving patients uncertain and frustrated.
Rite Aid Files for Bankruptcy—Again
Rite Aid, once one of the largest pharmacy chains in the US, filed for Chapter 11 bankruptcy for the second time, most recently in May 2025. The first filing came in October 2023 after the company struggled with huge debts and over a thousand lawsuits related to its part in the opioid crisis.
Since then, Rite Aid has closed hundreds of stores and plans to shut down many more. While the company is trying to restructure and sell its remaining stores to rivals, the impact on communities has already been severe—especially for people who depend on local pharmacies for their daily needs.
Pharmacy Closures Hit Hard
It’s not just Rite Aid. Walgreens has also been closing stores as part of a plan to focus on more profitable locations. In early 2025, dozens of underperforming branches were shut down, mainly in smaller towns and neighborhoods that already lacked options.
These closures are part of what Walgreens calls its “footprint optimization program,” but to customers, it means longer travel times and fewer places to fill prescriptions or get vaccinated. Transferring medical records is also becoming a challenge, with many customers unsure of where to go next.
Hospitals in Crisis
At the same time, Prospect Medical Holdings, a large hospital network that operates in several states, is facing financial disaster. The group has filed for bankruptcy, and many of its hospitals have either shut down or scaled back operations—especially in Pennsylvania and surrounding states.
Several emergency rooms have closed, forcing people to travel farther for urgent care. The remaining hospitals are overcrowded, with longer wait times and overstretched staff. This has created serious risks for patients who need fast, reliable treatment.
Workers Are Suffering Too
The crisis hasn’t only affected patients. Workers in these industries are also facing the consequences. Rite Aid employees have been laid off with little to no warning. Prospect Medical staff in some areas have even gone months without pay, according to reports from Connecticut Public.
Healthcare unions are speaking out, calling this a threat to both patient safety and workers’ rights. Missed paychecks, unstable job security, and job losses are spreading fear among healthcare professionals.
Community Leaders Speak Out
Pennsylvania state senator Tim Kearney strongly criticised the situation, calling it “devastating and disgraceful.” He said these closures are hurting healthcare workers and leaving patients with nowhere to go in emergencies.
Many leaders are now demanding investigations into how these companies handled their finances and are asking what the government can do to prevent more healthcare breakdowns.
With Rite Aid collapsing, Walgreens closing stores, and hospital networks shutting down, the US healthcare system is facing a deep crisis. From small towns to big cities, people are losing access to the care they depend on—while workers face layoffs and missed pay. Unless serious steps are taken, the situation may continue to get worse, putting millions at risk. Now more than ever, the country needs strong leadership and smart solutions to protect healthcare access for all.