YesCare Dodges Liability for Prison Conditions

The report details the corporate restructuring of Corizon Health into two entities, YesCare and Corizon (later Tehum Care Services), in May 2022. This 'Texas two-step' maneuver allocated the majority of legal liabilities and service provider contracts to the original Corizon entity while transferring cash, employees, and active client contracts to YesCare. In February 2023, Corizon filed for bankruptcy, pausing numerous lawsuits alleging medical malpractice and wrongful death. The report argues that this process allows the private equity-owned company to evade up to $50 million in liabilities and avoid reputational damage while continuing operations under the YesCare brand.

• YesCare, previously known as Corizon Health, has a extensive history of litigation, facing more than 1,000 lawsuits alleging substandard care by late 2021.
• In May 2022, the company underwent a 'divisional merger' that split it into two entities: YesCare (NewCo) and Corizon Health (RemainCo). Corizon was left with most legal liabilities and service provider contracts, while YesCare received the company's employees, existing client contracts, and nearly all its cash, except for $1 million left in Corizon's account.
• Corizon Health (renamed Tehum Care Services) filed for bankruptcy in February 2023, which has paused legal proceedings in multiple states for claims including wrongful death, medical malpractice, and Eighth Amendment violations.
• The bankruptcy filing estimates that Corizon may evade accountability for liabilities ranging between $10 million and $50 million.
• The company has been owned by various private equity firms for at least 16 years, including BPOC (2007-2017), BlueMountain Capital Management (from 2017), Flacks Group (from June 2020), and Perigrove Capital (as of August 2023).
• Corizon experienced a significant decline in its operational footprint, dropping from approximately 400 contracted facilities in 2011 to 220 facilities by the beginning of 2020.

APA

Fenne, M. (2023). YesCare Dodges Liability for Prison Conditions. Private Equity Stakeholder Project. https://pestakeholder.org/wp-content/uploads/2023/10/PESP_Report_YesCare-Corizon_2023.pdf

Chicago

Fenne, Michael. YesCare Dodges Liability for Prison Conditions. Private Equity Stakeholder Project, 2023. https://pestakeholder.org/wp-content/uploads/2023/10/PESP_Report_YesCare-Corizon_2023.pdf.

Wikipedia

{{cite report |last1=Fenne |first1=Michael |title=YesCare Dodges Liability for Prison Conditions |publisher=Private Equity Stakeholder Project |date=October 2023 |url=https://pestakeholder.org/wp-content/uploads/2023/10/PESP_Report_YesCare-Corizon_2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fenne2023yescare, author = {Fenne, Michael}, title = {{YesCare Dodges Liability for Prison Conditions}}, institution = {Private Equity Stakeholder Project}, year = {2023}, month = oct, url = {https://pestakeholder.org/wp-content/uploads/2023/10/PESP_Report_YesCare-Corizon_2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }