The Nashville-based company will attempt to sell its behavioral health division, Recovery Solutions, Wellpath said in a Nov. 12 news release. Recovery Solutions operates civil and forensic behavioral health hospitals in seven states.
Here are five things to know:
- The company has more than $644 million in debt, according to the Miami Herald.
- Significant financial challenges led to the company’s bankruptcy, CEO Ben Slocum said in the news release. The company faced rising labor and operating costs and unexpected expenses from the COVID-19 pandemic, including testing, equipment and vaccine costs.
- In a news release, Wellpath said it plans to reorganize its jail and prison care divisions. The company will consider selling these divisions, according to the Miami Herald.
- The company’s current executive team remains in place, and the company does not expect the bankruptcy to disrupt day-to-day operations or employee pay.
- Wellpath has more than 13,000 employees, according to the Miami Herald. The company operates 420 facilities in 39 states.
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