Louisville’s jail intends to terminate its contract with its controversial health care provider, YesCare, just two years into its three-year contract, Metro Corrections announced on the afternoon of May 8.
“This decision is based on multiple identified violations of contractual obligations, as well as concerns regarding the company’s financial stability,” Metro Corrections said, adding that while the jail has been “satisfied” with clinical care from YesCare, “it recognizes the importance of ensuring the long-term reliability of these critical services.”
The announcement came the same day the Tennessee-based corrections health care provider filed for Chapter 11 bankruptcy protection in a federal bankruptcy court in Florida.
YesCare did not immediately respond to a request for comment.
Metro Corrections said it had “initiated an emergency procurement process” to get an interim health provider, with the intension of ensuring that there is “uninterrupted delivery of essential medical and mental health services” at the jail.
In a statement, the ACLU of Kentucky Executive Director Amber Duke said her organization “welcomes any effort to improve medical and mental health care” for people held at Metro Corrections but pointed to longstanding concerns about the conditions at the jail.
“Metro Government must ensure that this change results not simply in a new contract, but in measurable improvements that protect lives,” she said.
YesCare’s $47 million, three-year contract with Metro Government went into effect in March 2024.
The city selected YesCare after parting ways with Wellpath, a company that had faced strong backlash locally amid a sharp uptick in in-custody deaths spanning 2021-22.
But in selecting YesCare, Metro Government was selecting a familiar entity: The company’s predecessor, Corizon, had previously been the Metro Corrections health care provider until 2013.
Jail leadership at the time said Corizon was responsible for missteps and an internal investigation determined the company “may” have contributed to jail deaths in 2012.
YesCare was born through a bankruptcy move known as the “Texas Two-Step,” whereby Corizon offloaded its debt onto a new company while Corizon executives formed a third company, YesCare, to do business.
Corizon went through the restructuring amid mounting lawsuits alleging substandard care; critics say “Texas Two-Step” maneuvers allow companies to dodge debts.
When YesCare came in as the jail’s new health care provider in 2024, it hired on dozens of Wellpath employees to continue on.
The more than $15 million a year Metro Government has been paying YesCare is significantly higher than the $9 million Wellpath got. In 2024, Metro Corrections Director Jerry Collins and then-Deputy Mayor David James justified the cost while speaking to The Courier Journal, saying it was needed for things like an infirmary inside the jail, expanded mental health services and treatment for prisoners with substance abuse disorder.
While YesCare was controversial at the time it was selected, city officials stood by the decision, with James saying he thought they were a “good company” and pointing to a longstanding relationship between nearby Lexington and YesCare.
Louisville’s decision to ditch YesCare came just weeks after the state of Alabama canceled a $1 billion contract with the company.
There are currently about 1,500 inmates at Metro Corrections according to the city’s online jail population dashboard.
Josh Wood is an investigative reporter who focuses on public safety and government. Get in touch by email at jwood@courier-journal.com or on Signal at JWoodCJ.26.
This article originally appeared on Louisville Courier Journal: Louisville jail ends YesCare contract
