Wellpath to sell behavioral division, declare bankruptcy: 5 notes

Wellpath, one of the largest providers of mental and physical healthcare in US prisons, has filed for bankruptcy, the Miami Herald reported Nov. 14. 

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: 

1. The company has more than $644 million in debt, according to the Miami Herald.
   
   
2. 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. 
   
   
3. 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. 
   
   
4. 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. 
   
   
5. Wellpath has more than 13,000 employees, according to the Miami Herald. The company operates 420 facilities in 39 states. 

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