Wellpath Bankruptcy Plan Pivot Follows Inmate Claim Concerns

Feb. 3, 2025, 10:00 AM UTC

Bankrupt prison health-care firm Wellpath Holdings Inc. failed to drum up qualified bids for one of its business divisions, forcing it to explore new options as incarcerated people who have sued the company worry about how their claims will be treated.

Wellpath in November became the second prison health-care provider to file for bankruptcy in the past two years.

Like Tehum Care Services Inc. in 2023, Wellpath was deep in personal injury, medical malpractice, and wrongful death claims when it sought Chapter 11 protection—a pattern that has prompted prisoner-rights advocates and Sen. Elizabeth Warren (D-Mass.) to air concerns over the ...

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