MONTGOMERY — A prison health care company formerly contracted with the Alabama Department of Corrections (ADOC) should be investigated for fraud, according to State Rep. Chris England (D-Tuscaloosa).
ADOC terminated a $1 billion health care contract with YesCare in April. The company filed for bankruptcy in May.
The contract between ADOC and YesCare totaled $1.064 billion from April 2023 to September 2027 for comprehensive healthcare to all inmates in the physical custody and control of the ADOC.
The contract was criticized by multiple legislators in 2023 due to the company's financial and legal troubles in multiple other states.
Mary-Coleman Roberts, ADOC’s general counsel, said at a Contract Review committee meeting on Thursday that ADOC “expedited” its last payment to YesCare in April with the understanding that it would be used to make payroll for YesCare employees working in ADOC prisons for the April 24 and May 8 pay periods.
However, Roberts said YesCare paid employees only for the April 24 pay period after receiving funds from the state.
“YesCare asked us to expedite their last payment in April with the understanding that they needed it expedited to make payroll, particularly on April 24th, and it would also cover the May 8th payroll,” Roberts said at the meeting. “They did make payroll on April 24th. They received the payment earlier that week. They made the payroll on the 24th. They did not make the May 8th payroll. When I asked David Goldwasser, who is their chief restructuring officer, what our money was used for, he said, ‘Other things.’”
YesCare declared bankruptcy in May, and YesCare employees still haven’t received a paycheck for the May 8th pay period, according to Roberts.
England estimated the last payment to YesCare from ADOC was around $10 million.
“They defrauded the state and made material misrepresentations to a state agency saying, ‘Give us the money, and we’re going to go out here and pay the employees,’ and they didn’t. That’s a crime, and they should be held responsible for that,” England told reporters on Thursday. “They basically said go ahead and give us that disbursement early so we can go ahead and get these employees paid. Don’t forget there were several pay periods that went on where they were already late paying their employees. So, this was coming. It was inevitable. They were running out of money. What does somebody who’s desperately seeking cash do? They go say, ‘Hey, give me an advance so we can go take care of our responsibilities.’ They got the advance from the state, essentially paying them a disbursement early. I think it was to the tune of $10 or $11 million so they can go pay employees. Essentially, they paid the (April) 24 (pay period), and they pocketed the rest of the money. If you or me did somebody like that, we would be going to jail. Rightfully so. I don’t see why they should be any different.”
England continued, “At the end of the day, the state of Alabama is just as much as responsible for even entering into business with a company like YesCare, and then ultimately YesCare is responsible because as the evidence has shown they’re nothing short of a bunch of criminals.”
To connect with the author of this story or to comment, email [email protected].
Don't miss out! Subscribe to our newsletter and get our top stories every weekday morning.
