December 2024  

Please note that this article is updated as of December 16, 2024.  It is very likely there have been significant developments in the Wellpath bankruptcy proceedings between then and now. 

Also, a version of this will appear in the January/February issue of Graterfriends. 

What is Wellpath?  

Wellpath is the company that provides medical care to people incarcerated in the Pennsylvania Department of Corrections (DOC) and a few county jails in Pennsylvania.  Jails and prisons have a legal obligation to provide adequate medical care to people in their custody. This is based on the U.S. Constitution and state law.  Jails and prison are allowed to contract with a private company to provide this medical care, but the private company must still meet legal standards. 

What happened? 

On November 11, 2024, Wellpath filed for bankruptcy.   

Bankruptcy is a legal process where a company claims it does not have enough money to pay all its debts.  The company goes to bankruptcy court to try and get rid of debts, create a repayment plan, and reorganize.  This can mean that the court allows the company to not pay some of its debts, or to pay much less than it owes. This includes money the company owes to people who win lawsuits against it. 

What does this mean for you?  

Wellpath will continue to provide medical care in the DOC and jails where it currently operates.  If you have any problems with the medical care, you should continue to file sick call slips and grievances like you normally would. 

If you have a lawsuit against Wellpath or its employees, most likely this will pause your lawsuit.  You will likely also get less in damages if you settle the case or win at trial than you would have otherwise 

If you have a lawsuit against Wellpath, most likely Wellpath already filed a “Suggestion of Bankruptcy” in your case.  The court may also issue an order that “stays” the case.  That means the court paused or stopped the case and can restart it later.  This is legally required by the bankruptcy court.   

If you have a lawsuit against Wellpath employees, this might also have happened.  Many courts do not want a case to proceed when there is a bankruptcy.  This is because Wellpath may be paying for the lawyers that represent the Wellpath employees, or Wellpath may pay for any settlements or judgments.  

Do I need to do anything?  

If you believe you have been harmed by Wellpath through poor medical care and you have already filed a lawsuit, or you want to file one in the future, you might need to file a “Proof of Claim” in the bankruptcy court.  A “Proof of Claim” preserves or keeps your right to pursue your claim against Wellpath.  This is a separate process from the grievance process required through the Prison Litigation Reform Act (PLRA).  You still need to file grievances about your problems before filing a lawsuit. 

At the time of the drafting of this info sheet in November 2024, the Pennsylvania Institutional Law Project (PILP) does not have any information about the timing or process for filing a Proof of Claim.  The deadline for filing a Proof of Claim has not been set yet.  It is possible that by the time you read this info sheet, the deadline has already passed or is coming up very soon.  PILP also does not have information about what the Proof of Claim should include or how to file it.   

If you have questions about filing a Proof of Claim, you can write to:  

In Re Wellpath Holdings Unsecured Creditors Committee 
c/o Office of the United States Trustee  
United States Department of Justice  
515 Rusk Street, Suite 3516  
Houston, Texas 77002