DAP Health is looking to expand its healthcare services by purchasing the Borrego Health System.
Millions of dollars worth of real estate and medical supplies from the bankrupt clinic chain are currently up for auction. DAP Health’s takeover bid was announced on its website on Monday.
The Palm Springs non-profit is partnering with Innercare and Neighborhood Healthcare on the potential deal. Its proposal focuses on addressing staffing shortages and bringing the current system up to a higher standard.
Borrego Health filed for chapter 11 bankruptcy in September. According to DAP Health, the company solicited potential acquisitors to assimilate its clinics and assets.
Borrego Health has clinics all throughout Southern California, from San Bernardino County down to San Diego County. In 2021, Borrego Health served more than 120,500 patients and had more than 463,000 visits. Locally, it operates clinics in Cathedral City, Palm Springs, Desert Hot Springs, Indio, Thermal, and just recently opened one in Coachella.
“Our approach ensures patients who currently rely on Borrego Health for high-quality, culturally competent care would not experience an interruption in their service,” says DAP Health CEO David Brinkman. “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.”
The Borrego Health board of directors is expected to choose a bid as soon as this week.
"In hopes that the Borrego Health board of directors selects its bid proposal, the alliance has developed a comprehensive three-year operational plan that would allow for stabilization, optimization, and ultimately, growth of the current Borrego Health system," reads a news release by DAP Health.
According to DAP Health, the initial steps of this plan would focus on the stabilization of the clinics, with a substantial investment of managerial time and material investment in the system.
The company said employees at DAP Health, Innercare, and Neighborhood Healthcare would not see a change in their employment terms, benefits, or compensation resulting from this process. The alliance would instead make significant investments to retain the staff at Borrego Health and address staff shortages "while bringing the current system up to a higher standard of staffing ratios and workflows."
“Speaking for the remaining few founders and myself, it’s very rewarding to observe how this current outreach resonates with the agency’s nearly 40-year heritage,” says inaugural Desert AIDS Project Executive Director George Sonsel. “Through the decades, DAP Health has consistently demonstrated its perpetual readiness to share its expertise and professional guidance in support of the community’s needs.”
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