Prison Medical Bankruptcy Judge to Rule Soon on Case’s Future

A bankruptcy judge said he plans to rule in the coming weeks on the validity of prison healthcare provider Tehum Care Services Inc.'s bankruptcy and on a proposed settlement with prisoners.

Tehum and some of the prisoners have clashed over the settlement, worth approximately $54 million, as well as a request to dismiss the bankruptcy. The company, owned by Corizon Health Inc., is attempting to use a controversial bankruptcy maneuver known as the Texas Two-Step to resolve hundreds of personal injury claims from incarcerated creditors.

Judge Christopher M. Lopez of the US Bankruptcy Court for the Southern District of Texas ...