DAP Health Makes Bid to Protect Health Care Access for 120,000 People
In line with its mission — and in tandem with longtime community allies Innercare and Neighborhood Healthcare — the Palm Springs nonprofit leads a life-saving alliance to acquire Borrego Health.
PALM SPRINGS, February 5, 2023 – Palm Springs-based Federally Qualified Health Center (FQHC) DAP Health made a bid to acquire Borrego Health, which on September 12, 2022, filed for bankruptcy and solicited potential acquisitors to assimilate its clinics and assets. The proposed investment would be based on total enterprise value, assuming a debt-free, cash-free transaction.
At its height, Borrego Health served 275,000 patients annually across its various sites throughout San Diego and Riverside counties. Today, the system continues to cater to an estimated 120,000 individuals a year. Through their shared commitment to care for all members of their communities, DAP Health, Innercare, and Neighborhood Healthcare formed an alliance and are joining forces to continue operating Borrego Health — with DAP Health acting as the acquirer in order to protect patient access to integrated outpatient services.
“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 service lines and expertise, 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 winning bidder will be notified 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.
The initial steps would focus on the stabilization of the clinics, with a substantial investment of managerial time and material investment in the system. Employees at DAP Health, Innercare, and Neighborhood Healthcare would not see a change in their employment terms, benefits, or compensation resulting from this process. Rather, the alliance intends to make significant investments to retain the current staff of Borrego Health and to reinforce Borrego Health teams by addressing staffing 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.”
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.
Important Opportunities Presented by This Alliance
- DAP Health would be the acquirer of the Borrego Health system with Innercare and Neighborhood providing clinical, administrative and leadership services to the alliance. Together, the managing organizations would bring deep experience with the patient population and strong relationships with key partners such as health plans, social services agencies, and elected officials.
- Many employees within the expanded network may wish to transfer to a site closer to their home, offering a retention incentive for current Borrego Health and partner clinic employees alike.
- Each organization has unique areas of expertise it brings to the alliance. This strong partnership allows for operational and clinical cooperation for the best possible outcomes for each unique site. Innercare has deep expertise in caring for migrant and farmworker populations as well as an established presence in many of the communities served by Borrego Health. Neighborhood Healthcare offers strength in primary and family health, with strong ties in the greater San Diego area. DAP Health’s outstanding care for LGBTQ+ patients, and HIV/AIDS patients, as well as its best-practice approach to culturally responsive and relevant services, rounds out this outstanding team of partners.
- With strong executive leadership, oversight, and compliance, all three of the partners in this proposal can lend executive support to various sites during the transition period as the system rehires and augments operations.
- Neighborhood Healthcare has already successfully transferred several former Borrego Health sites to its management. This direct experience would further inform and strengthen the alliance’s approach to assuming operations for the remaining Borrego Health sites.
DAP Health’s priority in acquiring Borrego Health is to ensure that all existing sites remain open; that services are stabilized, optimized, and expanded; and that every aspect of operations is culturally and regionally appropriate to its respective communities. Given the wide footprint of the Borrego Health system, DAP Health is honored to partner with longtime ally organizations Innercare and Neighborhood Healthcare to realize the goal of providing highly effective, compliant, and culturally tailored care throughout the region.
“For almost 40 years, DAP Health has been dedicated not only to keeping its doors open but to extending them even wider so that an ever-expanding number of community members in need can be cared for,” concludes Brinkman. “The alliance we’ve formed with Innercare and Neighborhood Healthcare — two local organizations with similarly very deep roots in the communities Borrego Health has served — ensures that nearly 120,000 patients would not see health centers they’ve grown to depend on be shuttered by an acquisitor less familiar with and committed to our neighbors in need.”
Steven Henke, DAP Health Director of Brand Marketing