YesCare, the former Alabama prison healthcare contractor, filed for bankruptcy Friday after failing to pay workers on time, listing up to $500 million in liabilities and reporting it owes employees $9.7 million in unpaid wages.
) - The prison healthcare contractor that had its $1 billion contract with the Alabama Department of Corrections cancelled after failing to pay workers on time has filed for bankruptcy.
YesCare sought chapter 11 protection in the U.S. Bankruptcy Court in the Middle District of Florida on Friday. YesCare listed liabilities up to $500 million in the filing and reported as many as 5,000 creditors. It listed estimated assets between $50 million and $100 million. The state awarded YesCare, a company based in Brentwood, Tennessee, a $1.06 billion contract in 2023 to provide comprehensive healthcare to all ADOC inmates through September 2027.
The bankruptcy filing shows at least 200 Alabama-based creditors, including medical practices, hospitals, ambulance services and specialty healthcare providers across Birmingham, Montgomery, Mobile, Huntsville, Tuscaloosa and Dothan. Payroll problems In a motion filed with the bankruptcy court Friday, YesCare said it did not have enough money to fund payroll that was due May 8, and needed additional financing to make the payment. The company said this was one of the many reasons it filed for bankruptcy.
The company owes $9.7 million in unpaid wages and salaries, $4.9 million in accrued paid time off, $1.25 million to temporary workers and about $225,000 per month to independent contractors. One group of employees is owed for three weeks of work from April 19, through May 8, according to the motion. Another group is owed for two weeks of work from April 26 through May 8.
Healthcare, nurse and hands with documents, writing and professional with records of diagnosis and clinic. Medical, paperwork and reading of report, review and information of form, office or hospital YesCare was known as Corizon Health when it provided healthcare services to ADOC under a previous contract. Corizon Health split in 2022 into two entities, YesCare and Tehum Care Services. The latter filed for bankruptcy and in 2024 reached a $75 million settlement with its creditors.
The Wall Street Journal reports YesCare failed to make a required repayment and that agreement was terminated in March. WBRC 6 News reached out to the attorney representing YesCare in the bankruptcy proceedings but has yet to receive a reply. Man killed in Phenix City motel shooting, officials say
Alabama Prison Healthcare ADOC Contract Cancellation Naphcare Alabama Prison Workers Unpaid Morgan Hightower Yescare Wbrc Wbrc News Myfoxal Health Health News Adoc Adoc Yescare Bankruptcy Court Payroll Problems Yescare Payroll Problems Naphcare Naphcare Yescare U.S. Bankruptcy Court Alabama Department Of Corrections Prison Healthcare Contractor
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