A bankruptcy judge OK'd the sale of Borrego Health. What's next?

DAP Health's acquisition of Borrego Springs, Calif.-based clinic chain Borrego Health was approved by a bankruptcy judge, but another step remains before the deal can be finalized. 

The deal needs regulatory approval by the Health Resources & Services Administration, according to a March 1 DAP Health news release. Upon regulatory approval, Palm Springs, Calif.-based DAP Health — which, like Borrego Health, is a federally qualified health center — will assume control of all of Borrego Health's clinics with operational and administrative support from Innercare and Neighborhood Healthcare.  

While that process is underway, leaders from Borrego Health, DAP Health, Innercare and Neighborhood Healthcare will collaborate to ensure a smooth transition that "does not interrupt patient care or team members' careers," according to the release. 

The bankruptcy court's approval of the deal also resolves pending litigation between Borrego Health and the California Department of Health Care Services, according to the release.  

Borrego Health filed for bankruptcy in September after officials announced a plan to suspend Medicaid reimbursements following allegations of ongoing fraud and mismanagement at the health clinic.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars