State officials had planned to suspend reimbursement Sept. 29 after alleging ongoing fraud and mismanagement at the health clinic, according to the report. Borrego Health filed for Chapter 11 bankruptcy Sept. 12, which prevented the payment suspension from taking effect.
Borrego Health lawyers argued that axing the clinic’s reimbursement would cripple the organization and threaten the quality of care it provides to more than 90,000 patients.. The bankruptcy judge agreed, ruling Oct. 11 that the state “is not pursuing a regulatory remedy to benefit the public, such as revoking debtor’s ability to operate as a healthcare provider.”
The judge’s ruling gives Borrego Health more time to restructure its finances, which have plummeted over the past two years amid allegations that former executives, board members and contractors fraudulently spent millions of dollars, according to the Union-Tribune.
In a separate ruling, the judge ordered state health regulators to stop directing Borrego patients to other Medicaid providers, according to the report.
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
