Palm Springs, Calif.-based federally qualified health center DAP Health has made a bid to acquire bankrupt clinic chain Borrego Health.
DAP Health formed an alliance with Innercare and Neighborhood Healthcare in hopes of continuing operating the Borrego Springs, Calif.-based clinic, according to a Feb. 5 DAP Health news release. DAP Health is acting as the acquirer in order to protect patient access to integrated outpatient services.
Borrego Health serves about 120,000 patients a year, according to the release.
"Our approach ensures patients who currently rely on Borrego Health for high-quality, culturally competent care would not experience an interruption in their service,” DAP Health CEO David Brinkman said in the release. "With distinct geographic areas and service lines, all three alliance members are uniquely positioned to care for Borrego Health’s patients. Building upon longstanding relationships, and through strong leadership collaboration, our alliance has the experience, operational expertise, depth of management, and strategic foresight to be successful in this endeavor."
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. The bankruptcy filing prevented the payment suspension from taking effect.In October, a bankruptcy judge blocked health officials from suspending reimbursements.