Connections CSP files for bankruptcy while facing federal lawsuits
Signs of trouble at a major behavioral healthcare provider in Delaware grow, as the company files for bankruptcy.
Connections Community Support Programs provides mental health and substance use treatment, as well as primary medical care, throughout Delaware. This week it filed for Chapter 11 bankruptcy.
The nonprofit faces numerous lawsuits—including two recent federal suits over controlled substances and false Medicaid and Medicare claims.
The News Journal reports Connections' bankruptcy filings indicate it owes millions of dollars to tens of thousands of creditors—and that the company could be sold to a Pennsylvania-based nonprofit.
According to Connections' website, the nonprofit operates in more than 100 separate locations in Delaware, and recently expanded its services to the eastern shore 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 nonprofit 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 comment on whether they’ll be renewed.