Following Wellpath Chapter 11, Healthcare Professionals Serving Incarcerated Populations Secure $6.7 Million for Training with Support from Brattle Pro Bono Analyses

In the Chapter 11 bankruptcy proceedings of Wellpath Holdings, Inc., the largest provider of correctional healthcare services in the US, Brattle supported certain tort claimants in securing $6.7 million in additional funding for healthcare worker training – a direct investment in improving care for incarcerated patients – as well as stated commitments from the reorganized company to improve patient care quality.

Wellpath filed for Chapter 11 in November 2024 due to, among other reasons, a spike in professional liability expenses arising from lawsuits brought by patients alleging inadequate healthcare services and the negligence of healthcare professionals with whom the company contracts.

Brattle was retained by Willey Law Firm, which represented a group of wrongful death claimants. Brattle worked with Public Interest Experts (PIE) – a nonprofit that connects public interest advocates with expert witnesses and providers of litigation support in high-impact legal and policy matters – and nonprofit advocacy organization Worth Rises to assess the proposed reorganization plan on a pro bono basis in March 2025.

Brattle Principals David McKnight and Edmond Esses authored expert reports challenging the feasibility of the company’s proposed reorganization plan by spotlighting the significant costs of inadequate medical care. In a filing objecting to plan confirmation, the claimants relied on Brattle’s analysis to argue that Wellpath had underestimated its future medical malpractice liabilities. Mr. McKnight’s report estimated that, without improvements to the quality of care, Wellpath’s professional liability costs would average 5.1% of revenue – nearly double the 2.7% assumed in the debtors’ financial forecasts. Mr. Esses’s report, building on these estimates, concluded that without operational reforms the reorganized company would be unable to meet its long-term obligations if faced with adverse developments.

In response to the claimants’ objection, the debtors engaged with Willey Law Firm to ensure the following improvements to patient care:

• $6.7 million for training healthcare workers serving incarcerated people
• A new Patient Safety Hotline accessible to inmates, family members, and facility staff
• A restructured compliance department, now independent from legal oversight
• $800,000 for software upgrades to track and monitor clinical care quality
• A tuition reimbursement program to attract and retain qualified medical staff
• Reduced company footprint, with Wellpath exiting 65 contracts – shrinking to better manage patient care
• Stated commitments prioritizing patient care as a core value of the reorganized company

This engagement reflects Brattle’s mission to use economic evidence in service of the public interest. Both expert reports were submitted pro bono, contributing to greater accountability in the delivery of medical services within the US correctional system.