Committee on Legislative Oversight 10-28-26

Philadelphia City Council’s Committee on Legislative Oversight held a public hearing on October 28, 2026, under Resolution 260778, examining oversight of correctional healthcare contractors and disruptions in care at city jails. The Department of Prisons commissioner said the city began a competitive RFP process in April 2025, received six proposals, and selected CFG Healthcare in May 2026, shortly before YesCare filed for bankruptcy. CFG assumed care under an emergency bridge contract and then a one-year contract of up to $80 million; the commissioner said CFG retained 97% of YesCare’s local staff and that service metrics recovered after a decline in May. A community oversight board representative cited a $330 million, four-and-a-half-year Horizon/YesCare contract and raised concerns about limited public access to contracts and procurement decisions. Witnesses described delayed vendor payments, interrupted supplies and services, late wages, and missing or delayed retirement contributions. The commissioner said the city intervened with subcontractors and pharmacy needs during the transition and reported that medical care continued, though some staff absences occurred.

Council members questioned how the city vets vendors’ financial health, lawsuits, prior bankruptcies, and performance, and what contract provisions require financial reporting or protect payroll and subcontractors. They requested follow-up information on those safeguards, possible penalties and termination practices, local-business participation, and opioid-use-disorder treatment funding. The commissioner agreed to provide information where needed; the committee also called for stronger communication with the prison oversight board and support for affected workers. No new contract award or spending motion was voted on at this hearing; the resolution authorized the oversight hearing. Witnesses also urged greater transparency and consideration of public or local healthcare providers in future procurement.