Bankruptcy Facts, Contacts, Important Dates
Last updated 10/4/2022 at 10:41am
To file credit claims, file legal representation, follow all motions, pleadings and other documents use the free access site of https://www.kccllc.net/BorregoHealth. Information may also be obtained for a fee at https://pacer.uscourts.gov, or the court’s website.
Contact may also be made to the proposed Counsel to the Debtor, whose contact information is: Tania M. Moyron, Dentons US LLP, 601 South Figueroa Street, Suite 2500, Los Angeles, CA 90017. Telephone 213-623-9300.
Jacob Nathan Rubin, M.D. 4955 Van Nuys Boulevard, #308, Sherman Oaks, CA 91403, the Patient Care Ombudsman appointed by the US Trustee “is assigned to monitor quality of patient care provided to patients of Borrego Health, to the extent necessary during the bankruptcy, including interviewing patients and doctors. Dr. Rubin will also make a report in 60 days of his appointment on September 16,2022, and not less frequently than at 60-day intervals thereafter, he will report to the court after notice of the parties of interest. If the ombudsman determines the quality of patient care is declining significantly or is otherwise being materially compromised, he will file with the court a motion or written report with notice to the parties of interest immediately upon making such a determination.”
By a Formal Resolution, the Borrego Health Board of Trustees turned over authority and direction of the Chapter 11 filing to authorized officers representing Borrego Health, pending court approval: They are: Hooper Lundy and Bookman PC , as healthcare regulatory counsel; Kurtzman Carson Consultants LLC, as claims and noticing agent; Law firm of Dentons US, LLP, as bankruptcy counsel; Ankura Consulting Group, LLC, as financial consultant, and Isaac Lee, managing director of Ankura, as Chief Restructuring Officer (CRO)
Other contacts of importance are: David Ortiz Attorney for Acting US Trustee Tiffany L. Carroll, (619) 557 5013; and Kenneth Wang, Attorney for the California Department of Health Care Services.
Tuesday September 27, 3 p.m. Status RE: Continued hearing on a number “First Day Motions” of debtor for entry of order setting insider’s compensation filed on behalf of Borrego Community Health Foundation (on shortened time), and other waivers of creditors needed to keep the clinics open. Any additional declarations supporting the motion must be filed by September 19. Any opposition must be filed by Monday, September 26, by noon. Three replies may be filed or made at the hearing as set forth on the record.
Location: Jacob Weinberger United States Courthouse, Department 3, Room 129, 325 West “F” Street, San Diego, Calif. 92101-6991.
Although the court will conduct this hearing in person, any interested party may request to attend the hearing remotely, using Zoom Video. To participate in this hearing, or future hearings remotely via Zoom, individuals must request a Zoom appearance in advance, no later than 10 a.m., two business days before the date of the hearing. To request a Zoom appearance call, Courtroom Deputy, Russell Paluso, at (619) 557 5157.
The Court prefers in-person court attendance for pre-trial status conferences, and matters where significant arguments may occur. Zoom participation is not available for all hearings, but decided on a case by case basis. Also, a tentative ruling may state that a Zoom appearance is not allowed.
October 18, 2022: formal notice of the bankruptcy proceedings and a meeting by telephone of creditors.
October 20, 2022: The Initial Status Conference for creditors will be held at 2 p.m. Same location, access and rules as noted above.
November 21, 2022: Deadline for filing Proof of Claims
December 19, 2022: Deadline for complaints
According to the Chapter 11 filing, Borrego Health has between 5001 to 10,000 separate creditors, owed between $50 million and $100 million combined. Assets are worth between $50 million and $100 million. The non-profit is spending $1.5 million more a month than it takes in.
In 2021, Borrego Health provided approximately 386,000 patient visits, covering 94,000 patients at 24 clinics, six mobile facilities and two pharmacies in San Diego and Riverside counties. Before the 2020 investigation, Borrego Health was serving close to 200,000 patients. Some of whom may never have existed, but was the result of fraudulent billing.
Borrego Health’s services include comprehensive primary care (at some clinics); urgent care and behavioral health (at some clinics); in-house dental services; specialty care (at some clinics); transgender care; women’s health and prenatal care (at some clinics); veterans’ health; chiropractic services (at some clinics); tele-health and pharmacy. There are also special grants for programs focused on childhood preventive care, and other preventative health care programs at select clinics.
In the June 2020 IRS tax filing, Borrego Health reported annual revenue of almost $342 million, with 1,800 employees and total assets of $94.4 million. Chapter 11 Court records show $5.2 million cash on hand, $24 million in anticipated revenue from the U.S. Government Grants, $6 million in receivables from patients and pharmacies, and 700 full-time employees. Even though the number of employees has significantly dropped, the foundation is still paying a gross payroll, exceeding $2 million.