Incarcerated people and their families negatively impacted on a national level:
As a journalist, I never take pleasure in telling the public “I told you so,” but that is the case here. Almost as soon as we released our most recent article on Wellpath this past Monday, we were notified by an email that the largest for-profit prison health care corporation in the United States has filed for bankruptcy.
- Wellpath declares bankruptcy, leaving $6 million unpaid to Michigan EMS services
- PE-owned Wellpath continues to prioritize profit over care
Medical company’s bankruptcy could hinder jail death lawsuits in Charlotte
The Charlotte Observer had this to say, in part: “In Charlotte’s federal court, it is a defendant in at least five open lawsuits. ‘It’s a simple and familiar story of a multi-billion dollar company that’s trying to use the legal process to avoid responsibility for its civil rights violations,’ said Devontae Torriente, a legal fellow with the National Police Accountability Project — a nonprofit that is ‘dedicated to ending law enforcement abuse through legal action and educational programming.’ Its lawyers have about 200 pending lawsuits naming Wellpath as a defendant. The company did not respond to a request for comment on Friday. Wellpath is more than $644 million in debt, McClatchy previously reported. The ability to restructure and sell parts of the company under a Chapter 11 bankruptcy will reduce that debt by approximately $550 million, according to a news release. But to lawyers, the filing ‘raises questions about future accountability and justice for inmates and their families,’ said Charlotte attorney Micheal L. Littlejohn Jr., who represents several families who have filed lawsuits against Wellpath, the Mecklenburg County Jail and Sheriff Garry McFadden. ‘It could potentially hinder victims and their families from seeking the justice they deserve,” he said.’”
Read more at: Charlotte Observer
According to Epiq Cases: “On November 11, 2024, Wellpath Holdings, Inc. and its affiliated companies (collectively, the ‘Debtors’) each filed petitions in the United States Bankruptcy Court for the Southern District of Texas seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors’ cases have been assigned to Judge Alfredo R Perez. The Debtors’ cases are jointly administered for procedural purposes, meaning that all pleadings are maintained on the case docket for Wellpath Holdings, Inc. Case No. 24-90533 (the ‘Main Case Docket’). The Main Case Docket can be accessed through the website maintained by the United States Bankruptcy Court for the Southern District of Texas (https://www.txs.uscourts.gov). An unofficial version of the Main Case Docket is accessible in the ‘Dockets’ tab above.”
https://dm.epiq11.com/case/wellpath/info (you can find a list of debtors here). This list does not appear to include any outstanding (if any) settlement debts owed due to Wellpath’s deliberate indifference and medical neglect lawsuits.
Wellpath formerly known as Correct Care Solutions is based in Nashville, Tennessee and was founded in 2003.
- As reported by Bloomberg Law, “Wellpath appeared in court in Houston, Texas on December 11, 2024 (Wednesday). US Bankruptcy Judge Alfredo Perez approved the loan package, which refinances some older debt and injects about $105 million in cash into the company
- “Perez also approved rules for an auction to sell the company’s primary businesses; under the rules, a group of Wellpath lenders would submit the initial bid for one of the firm’s divisions.”
Wellpath Admits Failures at Monterey County Jails
Wellpath filed for bankruptcy protection in Texas on Tuesday, listing both its assets and liabilities as between $1 billion and $10 billion. Swearingen said it was too soon to comment on how that might affect the fine. Wellpath representatives told the bankruptcy court that the company plans to sell some assets and restructure a heavy debt load, some of which it attributed to legal settlements.
Considering all of the in-custody deaths, expensive civil lawsuits, and acts of deliberate indifference, as well as medical neglect, I find it hard to believe that any U.S. Judge in their right mind would allow Wellpath any latitude to restructure or reorganize their financial portfolio. However, this is the point that we’ve been attempting to make all along with our numerous articles. Wellpath LLC cannot engage in practices that harm incarcerated detainees and their families all by themselves. They have help and co-conspirators. Co-conspirators in the courts, in the legislature, and even in local governments like the one in Alameda County.
Wellpath once provided care in Lowcountry jails. Now bankrupt, inmate abuse claims are in limbo.
By remaining silent, many of these individuals and entities in political office are complicit and culpable in the deaths and mistreatment of many community members.
There are families engaged in ongoing litigation regarding the death or mistreatment of their loved ones at the hands of Wellpath’s staff throughout the country. Oh, how convenient it is for the private equity firm HIG Capital and their subsidiary Wellpath to dodge financial and ethical accountability simply by filing for bankruptcy.
If you sense a tinge of anger and frustration in my reporting, you are correct. More and more the two-tiered system of justice in America becomes exceedingly pronounced when we observe unscrupulous business maneuverings by corporations that take advantage of the most vulnerable populations in the United States.
There are some who wish that I would remain silent but then there are the families, friends, and loved ones of those who have met their demise in a place like Santa Rita Jail who quietly cheer my efforts to expose the illicit behavior and conduct of Wellpath employees.
SAYING NO TO WELLPATH
In September 2024, I met with Registered Nurse Supervisor Johnny Williams at San Bruno Jail (CJ#3) located in San Bruno, California. The jail is operated by the San Francisco County Sheriff’s Office. Williams, a long-time employee of the San Francisco Department of Public Health, supervises DPH employees that work at the jail. Nurse Williams relayed a story that is not commonly known to the public at large. He gave me permission to share this story with our readers. Well over 10 years ago, Wellpath LLC made a bid to secure the health care contract inside San Francisco jails. What was remarkable and highly extraordinary, is former detainees that were housed at 850 Bryant and San Bruno testified at a hearing against Wellpath. Many of the detainees were eventually transferred to California State Prisons (CDCR). There was a unified front formed by DPH employees and inmates. The message was clear. The health care that detainees and inmates received from SF DPH was superior to the health care treatment provided by Wellpath. Some inmates recounted their experiences that they had at other Bay Area jails, like Santa Rita Jail, who had agreed to contract with Wellpath.
California inmates claim jail medical provider gave poor care to cut costs
I often have pondered over the many deaths of prisoners at Santa Rita Jail while I was housed there (March 2022 to August 2023). I witnessed numerous instances of medical neglect by Wellpath employees at Santa Rita Jail. I literally begged U.S. District Judge Nathanial Cousins to contact the U.S. Department of Justice in order to conduct an independent investigation into the deaths that occurred at Santa Rita Jail.
HOW MANY MORE OF US MUST DIE BEFORE THE DEPARTMENT OF JUSTICE INTERVENES AT THE SANTA RITA JAIL?
Numerous questions have come to mind.
- Were the savings that Alameda County was promised by Wellpath LLC years ago worth all of these lost lives?
- And if Wellpath isn’t culpable in these deaths, then who is?
- Don’t you think that Alameda County could do better?
- Don’t our sisters and brothers housed inside this death camp known as Santa Rita Jail, deserve better?
Perhaps now is the time to demand that Nate Miley and the Alameda County Board of Supervisors revisit the County’s contract with Wellpath LLC.
I recently spoke with Darryl Geyer, a former detainee at Santa Rita Jail who nearly lost his lower leg because of the medical neglect and deliberate indifference of Wellpath employees. He also was angered and frustrated by this ploy by Wellpath to skirt liability.
(Deaths at Santa Rita Jail from March 2022 to August 2023)
Leonard Brown – 3/11/2022
Jose “Nick” Cardenas Pina – 5/17/2022
Nelson Chia – 10/27/2022
Ali Muhammad – 2022
Stephen Lofton – 1/17/2023
Charles Johnson II – 2/4/2023
Elizabeth Laurel – 2/11/2023
Candice “Cody” Vanburen – 2/28/2023
Eric Jesus Magana – 4/27/2023
I’d like to thank media outlets like the Davis Vanguard and KTVU Fox2 News reporter, Lisa Fernandez, for their unwavering reporting on this subject. Attorneys like Adante Pointer from the Peoples Law Office deserve our solid support. More and more there are fewer attorneys willing to fight for the rights of people who are poor and have no voice.
Malik Washington is a freelance journalist and Director at Destination: Freedom and Destination Freedom Media Group.
Wellpath makes their money by limiting the healthcare services they provide. It’s akin to health companies arbitrarily denying claims to boost their enormous profits. Private equity is only interesting in skimming the profits while allowing the company itself to rot. That’s the way many private equity big shots become billionaires.
This is a valid point that you raise, Walter. Gale and I really haven’t exposed HIG Capital’s involvement as much as I believe we should have. I (Malik) take the blame for that. I actually have a detailed report regarding HIG Capital’s dealings with Wellpath. I think what is bothering me most about this is how cavalier the courts, U.S. Legislators, and local sheriffs treat the loss of life when it comes to people of color to include low income/poor white folks. If the people that were dying as a result of Wellpath’s medical neglect and deliberate indifference were rich, this article would be front page in the national news. Gale brought something to my attention that I think is also relevant, and that is the fact that Wellpath’s bankruptcy filing was a ploy and a legal tactic by the corporation (and hits shareholders) to stymie efforts by plaintiffs to retrieve or obtain settlements in ongoing medical neglect and wrongful death lawsuits which are taking place all over the country. Thank you for your comment.