In the Alabama Political Reporter piece, “New report recounts checkered history of Alabama’s prison healthcare provider,” author Jacob Homes discusses PESP’s report “YesCare Dodges Liability for Prison Conditions: Merger, Division, and Bankruptcy” which found that YesCare used an underhanded bankruptcy strategy to evade liabilities for the conditions of the patients in its care.
Alabama Political Reporter October 19, 2023: New report recounts checkered history of Alabama’s prison healthcare provider
The story quotes PESP’s report and PESP’s Michael Fenne extensively, including in this passage:
“Most egregious, the report states, was YesCare’s use of a convoluted bankruptcy scheme that allowed it to continue to operate while shedding liabilities and lawsuits against it into a different business entity. Coined the ‘Texas Two-step Bankruptcy,’ this restructuring allowed private equity firms to profit off of YesCare’s operations while debt obligations were shuffled to the newly branded Corizon Health,where legal claims against the company could be paused in bankruptcy. The Texas Two-step has been described by U.S. Senator Dick Durbin as a ‘get out of jail free card.’
‘The bankruptcy strategy may allow YesCare and its PE owners to evade accountability for millions in liabilities,’ Fenne said. ‘Through this bankruptcy scheme, YesCare and its private equity owners have attempted to shake off responsibility for the potential liability for company misdeeds. Healthcare providers seeking profits from prisons and jails should not have an escape hatch if they are found liable for harms created by poor services.’”
You can see the full piece here: https://www.alreporter.com/2023/10/19/new-report-recounts-checkered-history-of-alabamas-prison-healthcare-provider/