What happens when a prison healthcare firm can't pay its bills?

A company that provides medical services to prisons recently filed for bankruptcy in Florida. YesCare, as it’s called, owes more money than it has on hand—between $100 million and $500 million in debts against only $50 million to $100 million in assets. This legal move, known as Chapter 11, pauses lawsuits while the company tries to reorganize. The trouble started with its predecessor, Corizon Health. That company faced nearly 200 lawsuits accusing it of poor medical care that led to injuries or even deaths in prisons across 27 states. To protect itself, Corizon split into two: YesCare took over the contracts and assets, while a smaller firm, Tehum Care Services, was left holding the legal problems. Tehum filed for bankruptcy to settle the claims.But here’s the catch. Tehum reached a deal with creditors, including victims and their families. However, YesCare was supposed to contribute $50 million to that settlement. Now, some of those same creditors have sued YesCare, saying it never paid up. The company hasn’t commented publicly yet. Whether this bankruptcy will shield it from further lawsuits remains unclear. Courts will now decide how to handle the mess.