Borrego Health Announces Court’s Approval of DAP Health Bid
Today, the U.S. Bankruptcy Court approved DAP Health’s bid to acquire substantially all of the assets of Borrego Health. This follows the Feb. 15 announcement that the Borrego Health Board of Trustees had selected DAP Health’s bid as the winning bid.
“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.”
Also today, the Court 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. Importantly, the agreement also resolves pending litigation between Borrego Health and DHCS.
The next step in finalizing the transaction is for the sale to receive regulatory approval from the Health Resources & Services Administration (HRSA). 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.
Borrego Health clinics remain open, and patients do not need to reschedule appointments as a result of this announcement.
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.”
“We’re proud to be part of the DAP Health alliance and expand our quality, compassionate, whole-person care to more families in El Cajon, Escondido, Nuevo, and San Jacinto, regardless of their circumstances,” said Rakesh Patel, MD, Chief Executive Officer of Neighborhood Healthcare. “We believe healthier communities are more prosperous ones. This alliance is a key example of how to increase access to care by being better together.”
“Innercare is honored to support DAP Health in its goal to protect access to care for thousands of people in Riverside and San Diego Counties,” said Yvonne Bell, Chief Executive Officer of Innercare. “We have been present in some of these communities for many years, and as an organization, we are excited to be part of a bright new future for Borrego Health.”
For additional information please visit www.borregohealth.org
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.
About the Alliance
Founded in 1984 as Desert AIDS Project, DAP Health was the first community-based clinic dedicated to serving low-income patients with HIV/AIDS. In 2012, it was designated as an FQHC Look-Alike, in 2015 became a 330 grantee, and today serves the general community with a full complement of integrated and lifecycle-appropriate care. DAP Health’s service area boundaries are located within the Coachella Valley, a unique desert community located in Eastern Riverside County in the Inland Empire of Southern California. The Coachella Valley comprises nine major cities as well as several unincorporated areas. The valley encompasses approximately 675 square miles, and its service area includes 310 square miles. CEO since 2006: David Brinkman.
Established in 1970, Innercare (formerly known as Clínicas de Salud del Pueblo, Inc.) is a private nonprofit FQHC operating 10 health care centers; five dental clinics; and three Women, Infant, and Children Programs in Imperial and Riverside counties. Its service area encompasses 30 rural and urban zip codes boasting a total population of over 680,000. This area includes communities along the U.S.-Mexico and Arizona borders. It also serves communities ranging in size from Niland (pop. 1,610) to Hemet (pop. 127,443). There is significant overlap in some of the areas currently served by Borrego Health, with approximately 21% of Borrego Health’s patients currently seeking secondary care at Innercare sites. CEO since 2003: Yvonne Bell.
Founded in 1969, Neighborhood Healthcare operates 24 health centers in San Diego and Riverside counties, serving upwards of 87,000 unique patients each year, 97% of whom are at or below 200% of FPL. Some 61% identify as Hispanic and 41% are best served in a language other than English. With deep cultural understanding, Neighborhood Healthcare excels at providing health care for all stages of life, including pediatric and adult primary care, prenatal care, family planning, HIV testing, women’s health, dental services, and basic pharmacy and lab services. Due to a large and growing Middle Eastern refugee/immigrant population in East San Diego County, Neighborhood Healthcare has developed a strong culturally and linguistically responsive program to care for Arabic speakers. CEO since 2017 (but at Neighborhood Healthcare since 2002 as a physician): Dr. Rakesh Patel.