DOVER, Del.- A lawsuit filed this month in Delaware Superior Court claims a downstate hospital network is owed millions of dollars by the state's contractor for inmate healthcare.
The lawsuit filed by Bayhealth Medical Center claims it is owed in excess of $6 million by Connections Community Support Programs for inpatient and outpatient services provided for Delaware inmates. The lawsuit also alleges the nonprofit breached contract with the hospital network under terms set under a memorandum of understanding for service and subsequent extension agreement.
Connections is the the Delaware Department of Correction's contractor for inmate's physical and mental healthcare.
According to the lawsuit, Bayhealth claims it had decided last year to not renew an MOU with Connections for inmate healthcare services after Connections did not pay it all money due for inpatient and outpatient services.
"On May 24, 2019, Bayhealth gave Connections notice it would not renew the MOU, which then terminated effective June 30, 2019," the lawsuit said.
Further negotiations resulted in an extension agreement in June that required Connections would pay $2.3 million by paying $1 million prior to the end of June and then six equal monthly installments, according to the lawsuit.
"Connections agreed to pay claims for health care services provided by Bayhealth in 2019 under the MOU and/or the Extension agreement according to a specific schedule and with specific requirements to describe the basis for any claim denial," the lawsuit said.
Bayhealth claims soon after entering the agreement that Connections breached contract by "failing to pay the full $2.37 million the parties had agreed would not be disputed and would be paid in installment payments."
The lawsuit additionally alleges the Connections further breached its contract by failing to pay claims for health care services provided in 2019 under the initial and extension agreement.
"Connections currently owes Bayhealth in excess of $6 million for the services Bayhealth provided under the MOU and/or the Extension Agreement," the lawsuit said.'
Bayhealth said it terminated the extension agreement. The hospital network is seeking a jury trial and monetary damages.
Neither an attorney for Bayhealth or administrators with Connections returned calls seeking comment on Thursday.
Jason Miller, a spokesman for Delaware's Department of Correction, said the agency has been aware of the brewing legal action between Bayhealth and Connections.
"While we will not comment on a pending legal matter between two private parties, the DOC has taken affirmative steps so that this legal dispute does not impact access to medical care for the individuals in our custody," he said. "DOC has fully complied with the terms of its contract for correctional healthcare services."
The lawsuit comes at a time when Connections is facing legal action from inmates and allegations of falsified medical records.