Clinic chain files for bankruptcy as payment cutoff nears

Borrego Community Health Foundation announced Sept. 12 that it has filed for Chapter 11 bankruptcy, but it will keep its clinics open. 

The Borrego Springs, Calif.-based organization said the bankruptcy filing was driven by a notification from California Health and Human Services that payments for Borrego Health Medi-Cal services will be suspended Sept. 29. Borrego said the bankruptcy filing will prevent the payment suspension from taking effect. 

Borrego will also work to resolve ongoing state and federal investigations during the bankruptcy process, the organization said. 

"Unfortunately, the misguided action by [Department of Health Care Services] jeopardizes patients and has led us to make a difficut decision to protect our patients and their access to care," Borrego Health CEO Rose MacIsaac said in a Sept. 12 news release. "Our mission to provide high-quality local access to those most in need drives us forward and this filing with the court will allow us to continue to provide care as we do today while we secure the future of healthcare for our patients."

Borrego Health has 21 locations and served more than 120,000 patients in 2021. The organization provides a variety of services, including primary, pediatric, behavioral and urgent care.

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