The clinic says it will also ensure that employees will get their pay and benefits.
With Medi-Cal suspending payments at the end of the month, Borrego Community Health Foundation has filed for Chapter 11 protection with a federal bankruptcy court in the Southern District of California, the Borrego Springs-based clinic has announced.
The filing comes after the August 19 notification from the California Health and Human Services Agency – Department of Health Care Services that it will reimpose its 100% payment suspension on all Borrego Health Medi-Cal services beginning Sept. 29.
The Chapter 11 process prevents the DHCS action from taking effect as the non-profit Federally Qualified Health Center contends with ongoing state and federal investigations.
In the interim, Borrego Health will continue operations and patients will have the same access to providers and services with no interruption of care. The clinic says it will also ensure that employees will get their pay and benefits.
“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,” Borrego Health CEO Rose MacIsaac says. “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.”
Borrego clinics include Centro Medico in several cities, Palm Springs Family Health, Stonewall Medical Center in Cathedral City and the new Coachella Valley Community Health Center.
Borrego has seen a lot of turmoil within the past two years, as it contends with fraud and abuse allegations. In October 2020 state and federal agents seized computers and medical records after local media raised questions about the clinic’s business practices and exorbitant salaries of more than $100,000 for more than 200 employees, including a $1.9 million retirement bonus for former CEO Bruce Hebets. Medi-Cal temporarily suspended payments to the clinic in December 2020 while state regulators conducted a fraud investigation.
In August, the Borrego foundation board filed suit in federal court in San Diego against several former executives, board members and contractors for allegedly engaging in racketeering.
“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.”
Rose MacIsaac, CEO, Borrego Health
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
Borrego has seen a lot of turmoil within the past two years, as it contends with fraud and abuse allegations.
The Chapter 11 process allows the non-profit FQHC contend with ongoing state and federal investigations.