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.
