YesCare Dodges Liability for Prison Conditions: Merger, Division, and Bankruptcy
October 17, 2023
“YesCare Dodges Liability for Prison Conditions: Merger, Division, and Bankruptcy,” written by Private Equity Stakeholder Project (PESP) researcher Michael Fenne, chronicles the consequences of YesCare’s private equity ownership. With a business model prioritizing high profits and excessive cost-cutting or under-resourcing, private equity ownership, especially in the healthcare industry, can lead to poor patient care and allegations of neglect and mistreatment. YesCare was originally known as Corizon Health until May 2022, when its owners took a series of steps to restructure the company and divide it into two entities: YesCare and a newly rebranded Corizon Health.
As of late 2021, YesCare had faced more than 1,000 lawsuits alleging substandard care.
The company has been owned by private equity firms for at least 16 years— including BPOC, BlueMountain Capital, Flacks Group, and Perigrove Capital. This report comprehensively uncovers the private equity owners of YesCare for the first time.
Most egregious 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. YesCare was originally known as Corizon Health until May 2022, when its owners took a series of steps to restructure the company and divide it into two entities: YesCare and (a new) Corizon Health. 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 new Corizon Health and legal claims against the company could be paused.
Key Findings
- As of late 2021, YesCare had faced more than 1,000 lawsuits alleging substandard care.
- The company has been owned by private equity firms for at least 16 years— including BPOC, BlueMountain Capital, Flacks Group, and Perigrove Capital.
- Most egregious 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.
- YesCare was originally known as Corizon Health until May 2022, when its owners took a series of steps to restructure the company and divide it into two entities: YesCare and (a new) Corizon Health.
- 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 new Corizon Health and legal claims against the company could be paused.
Read the full report HERE.
