Alabama Prison Healthcare Contractor Files Bankruptcy as Employees Go Unpaid

Union Springs, AL (BuzzReport)—YesCare, the prison healthcare company whose $1 billion contract with the Alabama Department of Corrections was recently canceled after repeated payroll problems, has now filed for Chapter 11 bankruptcy protection in federal court in Florida.

Court filings show the company listed between $100 million and $500 million in liabilities, while reporting assets estimated between $50 million and $100 million. Records also reveal at least 200 Alabama-based creditors, including hospitals, medical providers, ambulance services, and healthcare practices across the state.

The bankruptcy filing comes as employees across Alabama correctional facilities report going more than two weeks without receiving paychecks, with many saying they have received little to no communication from the company regarding when — or if — they will be paid.

Workers at the Bullock County Correctional Facility say promises of payment were repeatedly delayed before communication from the company stopped altogether. Employees say the uncertainty has left many struggling to cover basic expenses including rent, vehicle payments, utilities, and fuel costs.

Several workers say this is not the first time payroll issues have occurred. Employees reported previous paychecks were delayed in recent weeks before the current situation escalated into missed payments altogether.

As financial pressure grows, some workers say they are facing overdraft fees, vehicle repossessions, and mounting bills while continuing to report to work without knowing when compensation will arrive.

The situation has also created confusion over who is now responsible for employee pay after another company assumed portions of the prison healthcare operations. Workers say they believe the state should intervene because Alabama awarded the contract to YesCare in the first place.

Despite the ongoing uncertainty, employees continue reporting to correctional facilities across the state while awaiting answers about their missing wages and the future of prison healthcare services in Alabama.