For the second time in less than a decade, St. Luke’s Health System has filed a lawsuit against the Idaho Department of Correction’s health care contractor, which has been enmeshed in controversy for years.
This time the Boise-based hospital system’s suit stems from what it says was a fraudulent bankruptcy scheme to avoid paying prison health care providers what they were owed. St. Luke’s is seeking $31 million for costs it says the company neglected to pay.
Idaho’s largest health care system is one of several across the country suing Tehum Care Services, formerly Corizon Health, over a 2023 bankruptcy that plaintiffs say became a ploy to get out of paying its creditors. The St. Luke’s lawsuit, filed in early June, alleges that the company used a controversial corporate restructuring maneuver to dump millions of dollars in liabilities to a shell company and shield profitable assets in another…