Healthcare firms are filing for Chapter 11 bankruptcy at record rates. We find that bankruptcies increase healthcare staff turnover, worsen care, and harm patients. Using a difference-in- differences design, we estimate that a bankruptcy filing immediately increases staff turnover and worsens the firm’s performance on unannounced inspections. Next, using a patient- distance-to-facility instrument, we document that bankruptcies harm patients through increases in hospitalizations, physical restraints, and bedsores. Finally, we employ a randomized survey experiment of nursing home staff to confirm that bankruptcy filings increase voluntary departures and that replacement workers harm patients.