A company that used to provide health care for inmates in Michigan prisons owes $35 million to other health care providers in the state.
Wellpath subcontracted with hospitals as well as ambulance services to take inmates to hospitals.
Angela Madden is head of the Michigan Association of Ambulance Services. She said Wellpath owes Kinross EMS in the Upper Peninsula nearly $500,000, for example. Kinross EMS has warned it may need to cease operations, leaving an entire community without an ambulance service.
"$500,000 is 11% of their annual revenue," said Madden. "They could potentially be unable to pay their employees to respond to community emergencies in the next month or two months. Other agencies have put off upgrading equipment or have put off cost of living adjustments for their staff."
The Michigan Health and Hospital Association (MHA) confirmed there are Michigan hospitals still awaiting reimbursement from Wellpath for services provided.
Wellpath is preparing to file for bankruptcy, according to Bloomberg.
Jenni Riehle, Michigan Department of Corrections public information officer, said the state Attorney General's office has filed a complaint against Wellpath to recoup the money, after the Correctios Department paid its contract to Wellpath in full.
But Madden said the outstanding bills need to be paid now. She said they're asking the state Legislature to pass a supplemental appropriations bill before year's end.
"The MHA is advocating for any solution that reimburses hospitals for the services already provided in this unprecedented situation," said John Karasinski, senior director of communications for the association.
