Weeks after state regulators ordered the suspension of all Medi-Cal reimbursements for the Borrego Community Health Foundation, charity officials have turned to bankruptcy court for protection from thousands of creditors owed tens of millions of dollars, The San Diego Union-Tribune reports.
In a Chapter 11 filing that stretches almost 700 pages, the nonprofit healthcare provider known as Borrego Health is asking a federal judge to shield the organization from its mountain of debt while it works to restructure in the midst of an ongoing criminal fraud investigation.
A board resolution included in the filing calls the bankruptcy a “good faith exercise of its reasonable business judgment” that is “in the best interests of the company and its creditors.”
The federally qualified health center, or FQHC, usually collects higher-than-usual reimbursements from Medi-Cal for delivering medical, dental and mental health services to rural and needy patients in San Diego and Riverside counties.
But state public health officials ordered those reimbursements suspended last month, saying the provider had failed to implement reforms it agreed to last year after a similar suspension in late 2020. Read more.
