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Borrego Community Health Foundation (Borrego Health) has filed for Chapter 11 bankruptcy protection, officials announced Monday.
Borrego’s legal filing is due Aug. 19.Th Notice from California Health and Human Services Agency – Department of Health Care Services (DHCS) that it intends to reimpose the 100% payment freeze on all Borrego Health Medi-Cal services effective September 29th.
The Chapter 11 process prevents the DHCS action from going into effect and resolves ongoing state and federal investigations. The act supports Borrego’s mission to protect local health care access and meet the unique needs of the communities it serves.
A case filed under Chapter 11 of the United States Bankruptcy Code is frequently called a “reorganization” bankruptcy. Usually, the debtor remains “in possession,” the trustee has powers and duties, can continue to operate the business, and can borrow new money with court approval. A plan of reorganization is presented, creditors whose rights are affected can vote on the plan, and the plan can be upheld by a court if it receives the necessary votes and meets certain legal requirements.
During the Chapter 11 process, Borrego Health will continue to operate as a normal business, officials confirmed.
“Patients have access to their healthcare providers and services without any interruptions in care. Borrego Health has taken the necessary steps to ensure employees do not miss a paycheck and receive a benefits package. Payroll and pay, purchase supplies and equipment, and ensure access to quality healthcare in the process.”
Borrego Health provides health care services throughout the Coachella Valley. The company has clinics in Cathedral City, Palm Springs, Desert Hot Springs, Indio, and Thermal. Just last month, he opened his new clinic at Coachella.
“Unfortunately, DHCS’s missteps put patients at risk and forced us to make difficult decisions to protect our patients and access their care,” said Rose Macysak, CEO of Borrego Health. “Our mission to provide high-quality local access to those in need keeps us moving forward, and this filing allows us to continue to provide the same level of care we do today as we look to the future of healthcare for our patients.”
Borrego Health has clinics in Southern California from San Bernardino County to San Diego County. In the year In 2021, Borrego Health served more than 120,500 patients and had more than 463,000 visits.
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