Wellpath Holdings files for Chapter 11 bankruptcy to restructure amid financial challenges

Wellpath Holdings, a major healthcare provider for prisons and mental health facilities, filed for Chapter 11 bankruptcy on November 11. The company aims to reorganize and sell assets due to rising costs and financial challenges. This filing follows other significant bankruptcies in the healthcare sector, including CarePoint Health Systems earlier this month. Despite a projected decline in overall healthcare bankruptcies for 2024, major providers continue to seek court protection. Wellpath has reached an agreement with most of its lenders to facilitate the sale of its behavioral health division. The company reported liabilities between $1 billion and $10 billion, with $644 million in funded debt obligations.