Filing for Chapter 11 protection to ensure patients continue to receive care
September 12, 2022
BORREGO SPRINGS, CA (September 12, 2022) – Borrego Community Health Foundation (Borrego Health) announced today that it has filed a petition for relief under Chapter 11 protection of the United States Bankruptcy Code in the Southern District of California. Borrego’s legal filing is driven by the August 19th notification from the State of California Health and Human Services Agency – Department of Health Care Services (DHCS) that the state intends to reimpose its 100% payment suspension on all Borrego Health Medi-Cal services beginning Sept. 29.
The Chapter 11 process will prevent the DHCS action from taking effect while also resolving ongoing state and federal investigations. The action supports Borrego’s mission to protect local healthcare access and meet the unique needs of the communities they serve.
During the Chapter 11 proceedings, Borrego Health will continue to operate in the ordinary course of business. Patients will have the same access to their health care provider and services with no interruption of care. Borrego Health has also taken the necessary steps to ensure employees do not miss a paycheck and continue to receive a benefits package. Borrego Health will continue to pay salaries and fees, purchase supplies and equipment and ensure access to quality health care during this process.
“Unfortunately, the misguided action by DHCS jeopardizes patients and has led us to make a difficult decision to protect our patients and their access to care,” stated Chief Executive Officer of Borrego Health, Rose MacIsaac. “Our mission to provide high-quality local access to those most in need drives us forward and this filing with the Court will allow us to continue to provide care as we do today while we secure the future of healthcare for our patients.”
About Borrego Health
Borrego Health provides high-quality, comprehensive, compassionate primary health care to the people in our communities, regardless of their ability to pay. We serve these communities and adjoining regions with respect, dignity and cultural sensitivity as a medical home and safety net for essential health care and social services. Borrego Health is a non-profit 501(c)(3) Federally Qualified Health Center (FQHC) and a Federal Tort Claims Act Deemed (FTCA) facility.