Texas
How Texas’s bankruptcy courts are used to shield a prison healthcare provider
When late last year the largest provider of healthcare to inmates in jails and prisons in the US found itself facing an avalanche of medical malpractice lawsuits, its path forward was seemingly obvious.
By filing for Chapter 11 bankruptcy in Texas’s increasingly popular bankruptcy courts, Wellpath Holdings could restructure itself, in the process staying the 1,500 lawsuits it had been facing and limiting its exposure to more than $100m in potential liabilities.
Last month, a bankruptcy judge for the southern district of Texas in Houston extended those stays to give Wellpath additional time to propose how it might exit bankruptcy and continue operating.
But critics say that the move is a cynical attempt to avoid paying out to the families of people devastated by the company’s actions in a state increasingly seen as a safe haven for big corporations looking to avoid paying out to people and families their actions have harmed.
Among the cases stayed for Wellpath was one brought by Teesha Graham of Albuquerque. Her father Frankie died in 2022 after spending almost a week slumped in his San Juan county jail cell, covered in vomit and excrement as medical staff and prison guards refused his requests for help, an inmate in the jail told the Guardian.
Also stayed was a claim brought by Nicole Poppell of Colorado Springs. Her daughter Savannah died aged 24 just three days after she was booked into El Paso county jail in Colorado. Incessant vomiting caused by opiate withdrawal tore her esophagus and she bled to death in her cell.
“Now they’re filing bankruptcy the chances are I could get next to nothing but really I don’t even give a shit about the money,” said Nicole. “I just want to be heard.”
Poppell and Graham are just two grieving family members wanting the bankruptcy court to consider their claims against Wellpath because as “unsecured creditors”, but they’re at the bottom of the hierarchy when it comes to who gets paid from the limited funds that remain.
Last week they enjoyed a small victory as Wellpath dropped its request that the court approve some $5m in bonuses for 12 of its executives. “I’ll never understand it,” said Graham.
Attorneys representing claimants against Wellpath say its bankruptcy was a long time coming, and part of a cynical strategy that would see it minimize costs low with reduced staff and improper insurance coverage. Malpractice lawsuits would inevitably accumulate but using the Texas courts it could largely shed itself of those liabilities and exit from it all relatively unscathed.
“These companies keep their costs as low as possible and then rely on the bankruptcy courts in Houston to bail them out once they hit a critical mass of lawsuits,” said Adam Flores, a New Mexico attorney representing Graham.
Wellpath is a for-profit business headquartered in Nashville, Tennessee, and owned by private equity firm HIG Capital. It operates in jails and prisons across almost 40 states and is responsible for the care of hundreds of thousands of inmates.
Although bankruptcy is governed by federal code, jurisdictions will enforce it with varying lenience, and typically if a company has enough assets in a given state they can make use its courts.
In recent years, the southern district of Texas has become a go-to bankruptcy venue, displacing the southern district of New York as the second most popular in the country behind Delaware.
“The Southern District of Texas really blew up four or five years ago,” said RJ Shannon, a bankruptcy attorney in Houston who is representing almost 100 claimants in the Wellpath case. “It’s a debtor-friendly court, so it’s where all the big cases will be filed.”
Last year, the southern district of Texas saw some 31 filings for bankruptcy by companies with assets greater than $100m, whereas the southern district of New York saw just 11, according to figures from Bankruptcy Data.
Wellpath’s filing in November made it the second prison contractor to have used the court’s Houston division in just two years after prison healthcare firm Corizon filed for Chapter 11 in early 2023. The maneuver it attempted has been referred to as “the Texas Two-Step” and sees a company split itself into two, placing valuable assets in one and its liabilities in the other.
Although Wellpath is pursuing a simpler and more traditional Chapter 11 restructuring, its critics say the move is intended to have precisely the same effect.
“I think the reason Wellpath filed here [in Texas] is that they saw Corizon do it and they saw good things came of it,” said Shannon. He said that not only is the Houston court friendly to debtors, it’s also “user-friendly”, meaning proceedings can take place fast.
Anna Holland Edwards, a civil rights attorney in Denver who has brought a handful of cases against Wellpath over her career, said she saw its bankruptcy coming from a mile away. In early November her office asked a state court to issue sanctions on the company ahead of its expected bankruptcy.
Holland Edwards and other critics of Wellpath paint its use of Chapter 11 as a “business model” – both inevitable and symptomatic of the increasing extent to which America’s corporate assets have come under the ownership of private equity funds.
They argue that Wellpath, under private equity ownership, borrowed money to buy up regional facilities across the country and then underbid rivals and county services in order to win taxpayer-funded government contracts. Underbidding meant cost-cutting.
“If they don’t have enough money, maybe instead of having 10 nurses working in jail they’d only get five,” said Shannon.
According to Graham, it was a lack of staff in San Juan county jail that led to her father’s death: “They feel like they can send two people in there to care for over 500 humans?”
Another cost-cutting measure that may have brought Wellpath to its knees was its purchase of liability insurance policies that appeared to meet state and local government requirements but failed to establish any “true risk transfer”. As revealed in the ongoing bankruptcy proceedings, these policies only pay out if Wellpath covers a share of the damages, otherwise, no insurance kicks in.
And so tight were Wellpath’s purse strings that at the time of its bankruptcy it had left around 15 EMS providers in Michigan with more than $6m worth of unpaid bills, according to the Michigan Association of Ambulance Services.
Where the chips will now land remains uncertain, according to Shannon. As it stands, the ball is in Wellpath’s court, as prepares to issue a revised plan for how it will restructure and emerge out of Chapter 11 operational.
A recent ruling by bankruptcy Judge Alfredo R Perez of the southern district of Texas extended the stay on the pending lawsuits until at least 30 April.
In the meantime, unsecured creditors will fight to have as much money as possible set aside for their settlements. In many cases, especially those involving personal injury, once the stays are lifted plaintiffs’ right to seek damages will be restored, but the pool of funds from which to collect will be limited.
For Wellpath, the plan after Chapter 11 is to continue business as usual, and with Trump in office, there has never been a better climate in which for it to emerge from bankruptcy, according to Andy McNulty, another civil rights attorney based in Colorado.
“We saw when Donald Trump was elected that private prison company stocks soared to all-time highs so there’s no reason to believe that if Wellpath is allowed to continue operating it will not continue to profit off the suffering of inmates across the country,” he said.
A spokesperson for Wellpath said in a statement to the Guardian that it had filed for Chapter 11 in order to “strengthen our financial foundation without compromising our ability to deliver high-quality patient care”.
“We remain committed to providing vital healthcare services to underserved populations and are confident this process will allow us to continue to do so for years to come,” they added.
The company declined to say why it chose to file in the southern district of Texas or to answer questions about its liability insurance.
Savannah’s mother Nicole said she wants to see Wellpath dissolved for good. “For three days she was in there and she was begging for help, she was crying for help, and she was alone,” she said. “I want these people shut down.”
Texas
Glamorous triathlete shared haunting post before drowning during Texas Ironman competition
A glamorous triathlete who drowned during an Ironman competition in Texas shared a photo from a swimming pool during a final training session just two days before the tragic race.
Brazilian influencer Mara Flávia, 38, shared the shot of her on the edge of a pool on Thursday — two days before she vanished during an open-water swim in The Woodlands Saturday morning.
“Just another day at work,” Flávia, 38, wrote in Portuguese alongside the pic of her wearing a matching pink swimming costume and cap.
The influencer, who had more than 60,000 followers online, chose the Robin S track “Show Me Love” for her post with the hashtags “triathlon,” “swimming” and “triathlete.”
Flávia vanished during an open-water swim in The Woodlands Saturday morning – the first of three grueling trials that competitors face during the 140-mile race.
Fire crews were told about a “lost swimmer” at around 7:30 a.m., one hour into the pro-female swim, KPRC reported.
Rescuers battled challenging visibility conditions before Flávia’s body was pulled from the water just after 9:30 a.m.
Montgomery County Sheriffs confirmed that the victim “drowned while participating in the swim portion of the event,” according to a statement. The office said its Major Crimes unit will continue the investigation “per normal protocols.”
Shawn McDonald, a volunteer, recounted the commotion before the swimmer’s body was recovered.
The dad, who volunteered with his daughter Mila, 12, said a group of younger volunteers in a kayak raised a flag and blew their whistles, “yelling for help.”
“I heard them say she went under,” he wrote on Facebook.
“I had Mila hand me the paddle and I started calling out to the athletes around us to stop so I could cross. I made my way over in about 30 seconds.
“When I got there and asked what happened, they all said the same thing: She went under. Right here. Right below us. The panic and fear on their faces won’t leave me for a long time.”
The volunteer recalled how one man had a “thousand-yard stare” on his face – before diving into the water in a desperate bid to find Flávia.
“I dove in immediately and began searching. After about a minute underwater, I felt her body with my foot. I surfaced, took what seemed like the deepest breath I have ever taken and went back down. She was gone.”
Boats with sonar combed the area – and McDonald was told to leave the water before the body was recovered.
“The victim was found in about 10 feet of water on the bottom of the lake,” Buck said. “The dive team accessed the victim, brought her up about 9:37 and then brought her over to the shore where she was pronounced DOS [deceased on scene],” Palmer Buck, the Woodlands fire chief, said.
It’s not known what caused the triathlete to go under the water.
Journalism grad Flávia previously worked in radio and television before pursuing a sporting career at age 28.
She previously twice won the Brazilian Grand Prix, and finished third in the Brasilia triathlon event.
Texas
Texas A&M Forward Transfer Seemingly on Visit to See Lady Vols Basketball | Rocky Top Insider

Lady Vols basketball is looking to add more pieces to its 2026-27 roster with high-level experience. After completing her junior season at Texas A&M, Fatmata Janneh has emerged as a Tennessee target for her final year of eligibility. According to her Instagram story on Sunday night, she is in Knoxville.
With the Aggies a year ago, the 6-foot-2 forward averaged 11.4 points per game on 43.3% shooting from the field. She also showed off an ability to hit from range, posting 1.1 makes per game on 33% shooting from three.
Perhaps Janneh’s biggest strength is her rebounding, though. She ripped down 9.7 boards per contest, good for the fifth-most in the SEC. This featured 2.6 rebounds on the offensive end per outing.
Janneh also averaged 1.1 assists, 1.4 steals and 0.4 blocks per game. She appeared in 27 games, starting in each.
More From RTI: How Watching The NCAA Tournament Drew Terrence Hill Jr. To Tennessee Basketball
Janneh started her career with a pair of seasons at St. Peter’s. As a sophomore, she averaged a double-double, posting 18.2 points and 11.6 rebounds per game. This made her a sought-after transfer in the portal before landing at Texas A&M as the nation’s leading defensive rebounder. As a freshman, she averaged 11.0 points and 8.0 rebounds.
The forward is from London, England, attending Barking Abbey Sixth Form for her prep ball. She would be the second player from England to join the Tennessee roster if she committed. UT also added the commitment of incoming freshman and former Boston College signee Irene Oboavwoduo this offseason.
So far, Caldwell and the Lady Vols have landed five transfers in this portal cycle. This features Liberty guard Avery Mills, Northern Arizona guard Naomi White, Stanford forward Harper Peterson and Georgia forward Zhen Craft and guard Rylie Theuerkauf.
Tennessee will also roster a pair of incoming freshmen. Four-star recruit and top-50 prospect Gabby Minus is staying true to her signing despite the roster overhaul and assistant coaching changes, along with the addition of Oboavwoduo.
Texas
Texas needs at least $174 billion to avoid water crisis, state says
AUSTIN (Texas Tribune) — Texas communities will need to spend $174 billion in the next 50 years to avert a severe water crisis, a new state analysis revealed Thursday. That’s more than double the $80 billion projected four years ago, when the Texas Water Development Board last passed a state water plan.
The three-member board presiding over the agency authorized the highly anticipated draft blueprint Thursday, the first administrative step toward adopting the water development board’s plans for the next 50 years. The plan, released every five years, encompasses the projects that 16 regional water planning groups in Texas said are the most urgent, water development board officials said.
The board’s latest estimates come as the state’s water supply faces numerous threats. Growing communities across Texas are scrambling to secure water, keep up with construction costs and cope with a yearslong drought. This week, Corpus Christi officials said the city may be just months away from declaring a water emergency. Meanwhile, other rural cities by the Coastal Bend are rapidly drilling wells to avoid a crisis. Residents in North Texas have also been bracing for groundwater shortages.
In an effort to restrain the crisis, lawmakers last year called an election in which voters approved a $20 billion boost for communities to use on water-related expenses. The water development board’s estimate shows that what lawmakers proposed on the ballot falls dramatically short of the needed cash, experts said.
“What this number tells me at the end of the day is if we don’t get serious about (funding water projects), there are going to be serious consequences for Texas,” said Perry Fowler, executive director of the Texas Water Infrastructure Network. “Even with the billion-dollar-a-year plan kicking in, it’s not going to be enough to offset the costs of the projects that are going to have to be executed.”
The new estimate accounts for 3,000 projects, from regional infrastructure upgrades to smaller endeavors such as drilling new water wells. Texas’ water supplies are expected to drop by roughly 10% between 2030 and 2080, according to the water plan. In that same time frame, the maximum amount of water communities can draw is also expected to decline by 9%.
The 80-page plan notes approximately 6,700 recommended strategies that would add water to the state’s dwindling portfolio. The recommendations — which are not accounted for in the cost — include developing new supplies from aquifer storage and recovery, brackish groundwater, desalination and recycled water. It also calls for water conservation.
The report suggested that if Texas does not implement the plans and recommendations, the state is one severe drought away from an estimated $91 billion in economic damages in 2030.
The state’s plan attributes a variety of reasons for the bigger price tag, such as higher costs of construction due to inflation, impacts of the COVID-19 pandemic on supply chains, and a growing backlog of water supply projects.
“There’s a plan that can meet our needs,” said Matt Nelson, deputy executive administrator for the Office of Planning at the water development board, adding that they take their cues from the regional planning groups. “These are local projects that folks need to implement; they’re needed regardless of how they’re funded. It’s important to remember these are not top-down projects or state projects.”
Experts told The Texas Tribune that the board’s estimate is only a fraction of what Texas communities will need to ensure they have water in 50 years’ time, saying growth and development are outpacing the state’s ability to keep up.
“This is a bigger water plan in terms of volume strategies and capital costs compared to anything we’ve ever seen before,” said Jeremy Mazur, the director of infrastructure and natural resources policy at think tank Texas 2036.
Mazur suggested that the $174 billion only covers water supply projects and does not account for updating aging infrastructure, adding that the actual price could amount to a quarter of a trillion dollars.
“There’s a substantial magnitude with regard to the capital investment needed to both fix our aging and current systems and potentially develop the water infrastructure, water supply projects that we need.“
The report largely confirmed what many water experts have warned regarding threats to the state’s water supply, said Sarah Kirkle, director of policy at the Texas Water Association.
“Population growth, extreme weather, and economic development needs are all increasing demands on our infrastructure, and the state is going to need more water, sooner,” Kirkle said. “This is all while water projects are becoming more costly and complex because the easiest and cheapest local projects have already been developed.”
Fowler, with the infrastructure network, said he expects the Texas Legislature to take up the issue next year, when lawmakers meet for the 90th legislative session. He said the state should take a bigger role in ensuring that communities can afford their respective water projects.
“It’s going to have to be a top-down priority, there’s no way around it,” he said. “The challenges are so immense that it’s going to take all hands on deck.”
Texas residents have until the end of May to comment on the proposal. Water development board officials must adopt it by January 2027.
Alejandra Martinez contributed to this story.
This article originally appeared in The Texas Tribune at www.texastribune.org. The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans – and engages with them – about public policy, politics, government and statewide issues.
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