Lawsuit claims Wellpath negligence killed Vermont inmate with untreated diabetes
By Timothy Page
A new wrongful death lawsuit filed in Vermont highlights ongoing concerns about medical care in the state’s prisons, accusing the Department of Corrections (DOC) and its private healthcare contractor, Wellpath, of failing to treat a diabetic inmate’s condition, leading to a preventable seizure, fall, and death.
The suit, filed March 3, 2026—one year after the incident—in Chittenden County Superior Court, was brought by Lisa Steadman on behalf of the estate of her son, Jason Colebaugh, a 40-year-old man incarcerated at Northern State Correctional Facility in Newport. According to the complaint detailed by VTDigger, Colebaugh submitted multiple requests to see a doctor and for his prescribed diabetes medication, a special diet, and a bottom bunk pass due to his seizure risk, but these were ignored or not fulfilled in a timely manner. On March 2, 2025, he suffered a hypoglycemic seizure, fell head-first from his top bunk onto the concrete floor, fracturing his skull, nicking an artery, and causing a fatal brain bleed. He was transported first to a local hospital in Newport lacking an intensive care unit, then to Dartmouth-Hitchcock Medical Center in New Hampshire, where he died in April 2025. The family alleges that by the time he reached Dartmouth, “it was too late.”
Lisa Steadman told VTDigger, “The idea that the Department of Corrections can’t treat and refuses to treat Jay’s diabetes is completely unacceptable.” Colebaugh’s father, Bill Steadman, expressed frustration with the treatment of incarcerated individuals, stating, “They think he’s an animal. That’s why they treat him as an animal. We treat pigs and cows better.” Attorney David Rankin, representing the family, emphasized the unacceptability of denying necessary care. Steadman added in coverage by WCAX, “They failed to provide adequate treatment for a manageable condition. They failed to issue a bottom bunk pass knowing he was prone to seizures, then delayed transport to a facility that could perform an emergency surgery he clearly needed.”
The defendants include the Vermont DOC, individual DOC employees, Wellpath, and a probation and parole office employee accused of denying due process related to a probation violation. Wellpath, which provides medical services under a contract with the DOC, is specifically accused of negligent failure to manage Colebaugh’s diabetes. While the full court docket or complaint PDF is not yet publicly linked in major reports (as the case is very recent), related coverage includes family announcements and media filings references, such as in MyNBC5, which notes the civil lawsuit seeking a jury trial and damages.
This case comes amid broader scrutiny of prison healthcare in Vermont. The DOC reported nine deaths in custody in 2025, with two more in early 2026, according to state data cited in the VTDigger reporting. Wellpath resumed providing services to Vermont prisons in July 2023 after a competitive bidding process, replacing VitalCore Health Strategies amid a spike in inmate deaths under the prior provider.
In April 2023, DOC Commissioner Nicholas Deml announced the contract, valued at approximately $33.8 million annually for three years (rising to about $35-40 million in recent reports), stating in the DOC press release, “As one of the cornerstone human service providers in our state, it is imperative the Department offers a comprehensive health services program that delivers the Vermont community standard of care… We are grateful to partner with a healthcare provider who will deliver the highest standard of care in this new reality, placing a renewed focus on mental health, evidence-based practices, contemporary health research, and holistic care.” Deml further told Vermont Public, “In Wellpath, we found a partner who has a similar commitment to really quality control, quality improvement and continuously getting better at what we’re doing,” acknowledging increased costs due to staffing pressures and post-COVID health needs. Wellpath’s CEO expressed enthusiasm for the partnership.
However, concerns were raised about Wellpath’s history. In 2023, a whistleblower, former director of nursing Louise Walker, revealed that Wellpath’s health services administrator at Southern State Correctional Facility in Springfield, Robert Stevenson, had lost or faced restrictions on nursing licenses in North Carolina, New Mexico, and North Dakota due to incidents involving opioid diversion or unauthorized use dating back to 2007. VTDigger reported that Walker was fired after raising the issue, highlighting potential risks to vulnerable incarcerated patients.
Wellpath’s challenges extend nationally. The company, which provides care in prisons and jails across the U.S., has faced numerous lawsuits alleging medical negligence and wrongful deaths. In December 2024, Wellpath filed for Chapter 11 bankruptcy amid rising costs and liability claims. WCAX reported that the restructuring would not affect operations or healthcare delivery in Vermont, with the DOC paying the company about $35 million annually. NPR detailed the firm’s history of being dogged by such suits, including dozens of wrongful death and negligence claims.
The DOC has declined to comment on pending litigation, including the Colebaugh case, consistent with its policy on active matters. In responses to prior concerns, officials have emphasized oversight through performance reviews and the limited number of qualified providers for correctional healthcare.
Other recent cases include a lawsuit over the 2022 fentanyl overdose death of Kenneth “Jeff” Nichols at Northwest State Correctional Facility (or Southern State in some reports), which WCAX reported is proceeding against the state and Wellpath, alleging failure to provide adequate care during withdrawals. Vermont Public covered the filing in Franklin County civil court. Earlier, a 2018 death from untreated asthma and sepsis under Wellpath’s predecessor branding (Correct Care Solutions) contributed to the company losing its contract until 2023; while specific Vermont court documents for that case are not publicly linked in searches, it was cited in broader reporting on contract changes.
Vermont’s prison healthcare has been a revolving door of providers—Wellpath (as CCS) from 2010-2015, Centurion until 2018, a brief Wellpath return, then VitalCore until 2023—each marred by controversies, including lawsuits and high death rates. A key related public records case, Human Rights Defense Center v. Correct Care Solutions, LLC, resulted in a 2021 Vermont Supreme Court decision (Docket No. 2020-308) ruling that Wellpath was subject to the state’s Public Records Act as an “instrumentality” of the state during its contract period. The full opinion is available at Justia and referenced on the Vermont Judiciary site. This forced disclosure of records on claims and settlements, implying undisclosed payouts for negligence during that period.