I was in the same boat, I was floating via a single big client and the situation was no good. I don't have the health issues you have, so maybe it was easier, but I hit the job application process hard and found something. The interview process was extremely stressful and difficult and I really wanted to give up, but things turned out well in the end. It sounds like you've got skills to offer and there's allegedly a shortage of good developers out there. Maybe you could job search in a lower competition area?
I went job hunting for the past 8 months and got 30 jobs and all of them rescinded their offers because my reputation is radioactive. So I would love to get a full time job. But it's not my path right now unfortunately. I would absolutely love that though.
No. Even without background checks, every employer ends up googling my name when I get hired, and rescinds the offer 100% of the time. My only hope of being a professional programmer is to do contracting with people who give second chances. I had two clients who have done that, but one cut off contact with me. So I have one client. No way to expand that.