On December 8, 2022, after raising more than $200 million in equity and convertible debt from the likes of Andreessen Horowitz, startup Health IQ started laying off hundreds of employees and contractors. Health IQ is one of a number of digital health companies that have declared bankruptcy in recent months, following Babylon and Pear Therapeutics. Healthcare is one of three industries, along with retail and real estate, that have seen a significant increase in bankruptcy filings this year, says Rob Lemons, Financial Restructuring partner, to Forbes. “High interest rates and limits on borrowing availability is huge,” he says. And it won’t be abating anytime soon. Lemons predicts there will continue to be an increase in bankruptcy filings for healthcare-related companies through 2024.