Everett The city of Lynnwood is moving forward with a new agreement to manage medical care for inmates at its municipal jail, following plans by its current provider to exit by year’s end.
State law mandates that cities cover essential medical needs for individuals held in local jails. Since April, Lynnwood has relied on Healthcare Delivery Systems for these services. In September, however, the company informed the city it would discontinue operations unless the city agrees to a written contract that fully indemnifies both the firm and all its staff and contracted personnel, according to Curt Zatylny, deputy chief of police, who updated council members during a recent meeting.
Lynnwood is not alone: three additional Washington municipalities received identical notices from Healthcare Delivery Systems, Zatylny noted.
While city staff explored offering indemnification, they ultimately opted instead for a proposed partnership with MEDIKO Correctional Healthcare, a Virginia-based firm. The projected annual cost for the new arrangement stands at nearly $2 million, roughly $150,000 more than the prior agreement, though significantly less than an earlier projection of a $1 million annual increase.
Zatylny indicated that Healthcare Delivery Systems cited Washington’s lack of statutory limits on tort and medical malpractice damages as a central concern. The company has not yet responded to requests for comment.
Earlier this year, Healthcare Delivery Systems appeared in a lawsuit claiming it neglected to address an inmate’s opioid withdrawal symptoms before her death at the Kent City Corrections Facility, according to court filings.
The situation reflects a broader trend. In February, NaphCare, an Alabama-based provider, pulled out of four county jails in Washington after being named in over forty federal lawsuits across the state over the past decade, as reported by the Seattle Times. Two of those lawsuits concluded with jury awards exceeding $50 million combined.
Lawmakers considered legislation this past session aimed at mitigating rising litigation expenses at the state level, but the proposal did not advance after encountering opposition from groups representing survivors of sexual abuse.
Mayor George Hurst remarked that the twelve Washington cities operating municipal jails have been collaborating regularly on state-level policy issues, including legal liability reforms.
“Right now, we, and many other agencies, are navigating a period of heightened pressure,” Police Chief Cole Langdon said Wednesday. “This has real implications for public safety and has become a point of tension. It’s a statewide challenge, not one confined solely to Lynnwood.”
The city council is expected to cast a final vote on the new contract next Monday.

