Bloomberg Law: Warren Urges Fair Wellpath Bankruptcy for Harmed Inmates

Sen. Elizabeth Warren (D-Mass.) is urging top executives at troubled prison health-care provider Wellpath Holdings Inc. not to abuse the company's bankruptcy proceedings by shortchanging incarcerated patients "harmed by medical malpractice."

H.I.G. Capital-backed Wellpath, one of the nation's largest providers of health-care services to prisons and jails, should commit to ensuring fair payments for claims of deficient medical care while it restructures in Chapter 11, Warren said in a letter sent to Wellpath CEO Ben Slocum and the founders of H.I.G. that was seen by Bloomberg Law.

Wellpath, which has for years been dogged by wrongful death and personal injury cases, put on hold more than 1,500 lawsuits when it filed for bankruptcy in November. The provider said in court papers that it was dealing with acute financial distress caused by underperforming contracts and escalating operational costs, including an increase in professional liability insurance and approximately $110 million in cash settlements between 2019 and 2023.

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