Signs of trouble at a leading Delaware behavioral health care provider are mounting as the company declares bankruptcy.
Connections Community Support Programs provide mental health and addiction treatment, as well as primary medical care, throughout Delaware. This week, he filed for Chapter 11 bankruptcy.
The nonprofit faces numerous lawsuits, including two recent federal lawsuits over controlled substances and false Medicaid and Medicare claims.
The News Journal reports Connections’ bankruptcy filings indicate that it owes tens of thousands of creditors millions of dollars and that the business could be sold to a Pennsylvania-based company. non-profit.
According to the Connections website, the nonprofit operates out of more than 100 separate locations in Delaware and recently expanded its services to the east coast of Maryland. Connections says it has more than 1,200 full-time employees and serves thousands of people each year.
Connections lost a $ 60 million contract with the Delaware Department of Correction last year for inmate medical and behavioral care.
The non-profit organization still holds two state contracts: with the Department of Health and Human Services and the Department of Services for Children, Youth and Their Families. Both contracts expire this year and state officials have declined to say whether they will be renewed.