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Bankruptcy court approves DAP Heath’s bid to acquire Borrego Health

Centro Medico Coachella
Centro Medico Coachella

DAP Health will be taking over Borrego Health. On Tuesday, the U.S. Bankruptcy Court approved DAP Health’s bid to acquire substantially all of the assets of Borrego Health.

On Feb. 15, the Borrego Health Board of Trustees selected DAP Health’s bid to take over its assets. While the bid was accepted by the board, it still needed addition approval from the bankruptcy court to move forward.

“With the Court’s approval of DAP Health’s bid, we are now focused on the important work of coordinating closely with DAP Health and its partners, Innercare and Neighborhood Healthcare, to support our patients and our teams through a smooth transition,” said Rose MacIsaac, Chief Executive Officer of Borrego Health. “Each of the communities our organizations serve have different needs, and I’m looking forward to seeing how our combined expertise and resources will strengthen access to quality care across the region and improve the lives of those who count on us.” 

The Court also approved an agreement between Borrego Health and the California Department of Health Care Services (DHCS) that facilitates the sale and smooth transition of operations from Borrego Health to DAP Health.

The agreement resolves pending litigation between Borrego Health and DHCS, according to DAP Health.

The next step in finalizing the transaction for the sale is regulatory approval from the Health Resources & Services Administration (HRSA).

Officials said while that process is underway, leaders from Borrego Health, DAP Health, Innercare, and Neighborhood Healthcare will begin collaborating toward their shared goal of facilitating a smooth transition that does not interrupt patient care or team members’ careers. 

Upon regulatory approval by HRSA, DAP Health would assume control of all Borrego Health clinics with operational and administrative support from Innercare and Neighborhood Healthcare.

Officials noted that the court’s approval is a key step in a careful, deliberate process that began in November 2022 to sell Borrego Health to a like-minded federally qualified health center (FQHC). Borrego Health’s goal throughout the process has been to secure continued access to a health home and safety net for the patients and communities it serves.

“We entered this process with one goal – to ensure that people who receive care today will find the doors to that care open tomorrow,” said David Brinkman, Chief Executive Officer of DAP Health. “Today's decision begins a year of convening and collaborating with our partners to protect health care access for Borrego's patients. We look forward to working alongside leadership at each organization to create the path forward.” 

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.

Borrego Health clinics remain open. Officials said patients do not need to reschedule appointments as a result of this announcement.

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Jesus Reyes


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