Wellpath Files For Bankruptcy; Behavioral Health Division For Sale

On November 11, 2024, Wellpath, which provides health services to people in correctional and mental health facilities, filed for bankruptcy under Chapter 11 to reduce about $550 million in debt. It reached an agreement with most of its first- and second-lien lenders. As part of the agreement, Wellpath intends to sell its Recovery Solutions business and initiate a separate reorganization of Wellpath Correctional Healthcare, which includes its Local Government and State & Federal business divisions. The sale of its Recovery Solutions business is being supervised by the court.

While bankruptcy proceedings are ongoing, Wellpath plans to continue delivering services . . .