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How Texas’s bankruptcy courts are used to shield a prison healthcare provider

Wellpath filed for bankruptcy in ‘debtor-friendly court’ as it faced avalanche of wrongful death lawsuits from families of inmatesWhen late last year the largest provider of healthcare to inmates in jails and prisons in the US found itself facing an avalanche of medical malpractice lawsuits, its path forward was seemingly obvious.By filing for Chapter 11 bankruptcy in Texas’s increasingly popular bankruptcy courts, Wellpath Holdings could restructure itself, in the process staying the 1,500 lawsuits it had been facing and limiting its exposure to more than $100m in potential liabilities. Continue reading...


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