The Borrego Health Board of Trustees selected DAP to acquire the bankrupt Borrego Springs, Calif.-based clinic chain, the Palm Springs Desert Sun reported Feb. 15.
DAP Health, a Palm Springs, Calif.-based federally qualified health center, made its bid in partnership with Innercare and Neighborhood Healthcare. Upon approval by the bankruptcy court and the California Health Resources & Services Administration, DAP would assume control of all of Borrego's clinics, which are located in Riverside and San Diego counties, according to the report. Innercare and Neighborhood Healthcare would provide operational and administrative support.
A final sale hearing in bankruptcy court will be held March 1, according to the report.
Borrego Health serves about 120,000 patients a year. It 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.