BIRMINGHAM, Alabama -- A Mississippi company that provides healthcare for
prisoners in jails says in a lawsuit that Jefferson County and Sheriff Mike Hale
breached a $4 million a year contract with them when another company was hired
last year to provide the services.
Health
Assurance LLC filed the lawsuit in U.S. District Court in
Birmingham last week. The lawsuit names as defendants Jefferson County, Sheriff
Mike Hale, and Advanced Correctional Healthcare Inc., the new
company brought in to provide prisoner healthcare at the jail.
Health Assurance states in its lawsuit that it contracted with Hale on Feb.
7, 2007 to provide medical services to county jail inmates. The company's annual
base compensation was $4 million, divided in monthly payments.
The company states in the lawsuit that it employed doctors, nurses, and
records technicians for the jail.
On Oct. 1, 2011, without notice, Illinois-based Advanced Correctional
Healthcare Inc. was brought in to provide the services, the lawsuit states.
Employees not kept by the new company were fired effective Nov. 30, the lawsuit
states.
The lawsuit claims breach of contract on the part of Jefferson County and
Hale and "tortious interference with contract" by Advanced Correctional
Healthcare Inc. The lawsuit claims Advanced poached one employee and was privy
to its trade secrets that were used to under bid them for the services.
Jefferson County filed for bankruptcy last year, citing $4.23 billion in
debt. Lawsuits are automatically stayed _ or put on hold _ against those who
file bankruptcy.
"The County's financial crisis is no big secret. We negotiated a new contract
for inmate health care at a much lower cost than what Health Assurance was
providing. Health Assurance had every opportunity to bid on a lower contract,"
Jefferson County Sheriff Chief Deputy Randy Christian stated in an email this
morning.
"They did a fine job while here we just couldn't afford them anymore unless
we laid off more deputy sheriff's that protect the citizens of Jefferson
County," Christian wrote. "Basically we are getting quality care at a much lower
cost that saved the jobs of several deputy sheriffs that are desperately needed.
We are very comfortable defending our position on that."
A lawyer for Advanced Correctional Healthcare also responded to the lawsuit.
"Advanced Correctional Healthcare has not received or been served with any
such lawsuit,"Jessica K. Young, corporate attorney with the company, stated in
an email response to an inquiry by The Birmingham News.
"The company is pleased to have the opportunity to deliver a high standard
of healthcare for Jefferson County inmates while working with Jefferson County
to address the need to provide quality healthcare within its budget," Young
wrote. "Advanced Correctional Healthcare did not tortiously interfere with any
contract and intends to aggressively defend the case if it is served with
process."
Updated at 12:13 p.m. Oct. 24 to include response from Advanced
Correctional Healthcare
prisoners in jails says in a lawsuit that Jefferson County and Sheriff Mike Hale
breached a $4 million a year contract with them when another company was hired
last year to provide the services.
Health
Assurance LLC filed the lawsuit in U.S. District Court in
Birmingham last week. The lawsuit names as defendants Jefferson County, Sheriff
Mike Hale, and Advanced Correctional Healthcare Inc., the new
company brought in to provide prisoner healthcare at the jail.
Health Assurance states in its lawsuit that it contracted with Hale on Feb.
7, 2007 to provide medical services to county jail inmates. The company's annual
base compensation was $4 million, divided in monthly payments.
The company states in the lawsuit that it employed doctors, nurses, and
records technicians for the jail.
On Oct. 1, 2011, without notice, Illinois-based Advanced Correctional
Healthcare Inc. was brought in to provide the services, the lawsuit states.
Employees not kept by the new company were fired effective Nov. 30, the lawsuit
states.
The lawsuit claims breach of contract on the part of Jefferson County and
Hale and "tortious interference with contract" by Advanced Correctional
Healthcare Inc. The lawsuit claims Advanced poached one employee and was privy
to its trade secrets that were used to under bid them for the services.
Jefferson County filed for bankruptcy last year, citing $4.23 billion in
debt. Lawsuits are automatically stayed _ or put on hold _ against those who
file bankruptcy.
"The County's financial crisis is no big secret. We negotiated a new contract
for inmate health care at a much lower cost than what Health Assurance was
providing. Health Assurance had every opportunity to bid on a lower contract,"
Jefferson County Sheriff Chief Deputy Randy Christian stated in an email this
morning.
"They did a fine job while here we just couldn't afford them anymore unless
we laid off more deputy sheriff's that protect the citizens of Jefferson
County," Christian wrote. "Basically we are getting quality care at a much lower
cost that saved the jobs of several deputy sheriffs that are desperately needed.
We are very comfortable defending our position on that."
A lawyer for Advanced Correctional Healthcare also responded to the lawsuit.
"Advanced Correctional Healthcare has not received or been served with any
such lawsuit,"Jessica K. Young, corporate attorney with the company, stated in
an email response to an inquiry by The Birmingham News.
"The company is pleased to have the opportunity to deliver a high standard
of healthcare for Jefferson County inmates while working with Jefferson County
to address the need to provide quality healthcare within its budget," Young
wrote. "Advanced Correctional Healthcare did not tortiously interfere with any
contract and intends to aggressively defend the case if it is served with
process."
Updated at 12:13 p.m. Oct. 24 to include response from Advanced
Correctional Healthcare
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