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DAP Health completes acquisition of bankrupt California clinics

DAP Health's acquisition of bankrupt Borrego Springs, Calif.-based clinic chain Borrego has received final approvals, and the two will now operate as one integrated system. 

Palm Springs, Calif.-based DAP Health — which, like Borrego Health, is a federally qualified health center — was selected by the Borrego Health board of trustees in February as the winning bidder to acquire the clinic chain. The acquisition needed approval from a bankruptcy court — which signed off on the deal March 1 — and the California Health Resources and Services Administration. The HRSA has now also approved the acquisition, according to a July 31 DAP Health news release. 

Every Health and Borrego Health location will remain open and retain their original name, branding and signage for the time being, according to the release. All Borrego Health employees were offered employment at DAP Health and 99 percent accepted. Any patient at DAP or Borrego can make appointments at any location in the expanded system. 

Borrego Health filed for bankruptcy Sept. 12. The bankruptcy filing came after California Department of Health Care Services officials announced a plan to suspend Medicaid reimbursements following ongoing allegations of fraud and mismanagement at the health clinic.

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