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Former Prison Medical Firm Files Bankruptcy After Federal Suit

April 20, 2021, 1:25 PM

A mental health provider that served prisoners and addicts filed bankruptcy after losing a state prison contract and being sued by federal prosecutors for allegedly submitting false Medicare and Medicaid claims.

Connections Community Support Programs Inc. blamed its financial troubles on the loss last year of $60 million in prison health care contracts it held with the state of Delaware. The non-profit corporation listed as much as $100 million in debt in court papers filed Monday in U.S. Bankruptcy Court in Wilmington, Delaware.

The company has a tentative agreement to sell itself as part of the bankruptcy, according to ...

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