Michigan Emergency Medical Service (EMS) providers are grappling with financial fallout after Wellpath Holdings, Inc., the former healthcare provider for the Michigan Department of Corrections (MDOC), declared bankruptcy in November.
The move leaves nearly $6 million in unpaid claims to at least 15 EMS agencies in Michigan’s eastern Upper Peninsula, The Center Square reports.
Wellpath ended its contract with MDOC in April, leaving emergency providers serving state prisons without compensation. Wellpath CEO Ben Slocum attributed the bankruptcy to a combination of challenges, including pandemic-related setbacks, inflation, and rising interest rates, which have saddled the company with over $644 million in debt. Slocum described the bankruptcy process as a step to stabilize Wellpath and its services long-term.
The Michigan Association of Ambulance Services (MAAS) is urging the state to provide supplemental funding to reimburse EMS providers, warning that many could be forced to shut down without financial relief.
EMS agencies, including Richmond Lenox EMS, warn that the inability to recover losses could leave communities and state prisons in the eastern U.P. without emergency care.
Wellpath has pledged to pay suppliers for goods and services provided during the bankruptcy proceedings but has not committed to resolving debts incurred before filing.
