St. Alphonsus Suing Prison Contractor For Millions

Apr 27, 2018

Treasure Valley health care provider Saint Alphonsus is suing a prison contractor for millions. Since an agreement between St. Al's and the contractor, Corizon, ended in 2015, the hospital says the private company underpaid for medical treatments.
Credit Samantha Wright / Boise State Public Radio

One of the Treasure Valley’s largest health care providers, Saint Alphonsus, sued a private prison contractor in a federal court this week. The medical group says it’s owed millions for procedures on inmates.

St. Al’s struck up a deal with prison contractor Corizon in 2011. Under the agreement, the company that provides medical care to Idaho’s incarcerated would pay for treatments on inmates at St. Al’s Boise hospital. When that deal expired in 2015, Corizon tried to strike a new arrangement with the hospital, but said it would only pay Medicaid rates.

The hospital balked and didn’t renew or renegotiate the contract. St. Al’s asserts that from 2015 to earlier this year, Corizon continued to send prisoners to its hospital for treatment but only paid greatly-reduced Medicaid prices.

St. Al’s is seeking $14 million for services rendered and an additional $5 million in interest.

In an email to the Statesman, an official with Corizon says the contractor has fairly paid St. Al’s for treatment. The company says state law sets the Medicaid repayment rate for prisoners.

The hospital challenges that assertion. St. Al’s cites a court ruling saying the Medicaid rate does not apply to private contractors like Corizon.

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