Sister of man who died in KY prison settles lawsuit with healthcare provider
The embattled healthcare provider for Kentucky prisons recently settled a federal lawsuit that alleged the company’s neglect caused the death of an inmate in their care.
The suit was filed by Britney Jones, whose brother, Chad Lake Raymond, died in 2021 at the Eastern Kentucky Correctional Complex in West Liberty. Jones sued the healthcare provider, Wellpath, in 2023.
The Tennessee-based company, which insures prisons across the U.S. against healthcare-related lawsuits, faced 606 pending suits nationwide as of June 2026, including 19 in Kentucky. Some of those suits accuse the company of fraud, prompting questions about whether Wellpath has proper insurance coverage of its own to cover payouts in healthcare lawsuits.
Jones’ case was settled June 4, according to court documents, but the terms, including the settlement amount, were not made public.
Jones’ lawyer, Greg Belzey, confirmed the settlement but declined to comment further.
“All claims in this case having been settled, the parties being in agreement as indicated by the signatures of their counsel below, and the court being overwise sufficiently advised, it is hereby ordered that all claims in this case are dismissed with prejudice,” the dismissal order reads.
What happened in the federal, state lawsuits
Raymond died May 9, 2021, of endocarditis, an infection of the heart’s valves, after his condition worsened over a period of 11 days in custody, according to his sister’s lawsuit.
The case was initially slated to be settled in 2024, according to court documents, but Wellpath unexpectedly declared bankruptcy, halting the proceedings.
The lawsuit was eligible for settlement after Wellpath reemerged last year in good financial standing after declaring Chapter 11 bankruptcy.
Kentucky has contracted with Wellpath, formerly named Correct Care Solutions, since 2014. Despite the company’s financial trouble the state re-upped its contract and is paying Wellpath $60 million this year to provide healthcare to Kentucky inmates and insure prisons against healthcare-related lawsuits.
On Oct. 10, 2025, Jones filed a second lawsuit — this time against the state justice cabinet and its officials for failing to ensure Wellpath could pay out wrongful death and negligence lawsuits against Kentucky prisons.
And when Wellpath signed a contract with the state, it assured Kentucky officials it had insurance to cover such settlements, as required by state law. But James Seitz, the company’s director of insurance, wrote in bankruptcy filings that Wellpath’s insurance was merely a “fronting policy” and did not appear to provide actual coverage against lawsuits.
Fronting policies — which don’t require proof that a company can pay out settlements but instead assure the policyholder the company will be able to pay out if it comes to that — meet requirements set by state lawmakers that prisons have coverage from a licensed insurer, Seitz wrote.
In March, the state of Kentucky filed to join the lawsuit and asked for new defendants to be added.
“The question of whether the (certificate of insurance) provided was intended as legally valid and enforceable coverage or sham coverage is highly relevant to this matter and potentially actionable as fraud upon the Commonwealth,” the state wrote in their filing.
Jones’ lawsuit against Kentucky officials was settled recently, too, Belzley said, though that settlement was not reflected in online court documents as of Monday afternoon.
Wellpath declined to comment.
