Correction: Borrego Health
Last updated 11/2/2022 at 11:38am
In the previous issue of the Borrego Sun (Oct. 13, 2022) in the article on Borrego Health’s Bankruptcy proceedings announcing the Judge’s decision to stay the state Department of Health Care Services’ (DHCS) suspension of Medi-Cal funding, (Page 1: “Judge Reinstates Medi-Cal Funding”), there was an error in the amount the state monitor, Isaac Lee, has been paid for overseeing the Foundation’s implementation of the Corrective Action Plan (CAP), imposed by the state.
Lee, managing director of Ankura Consulting, has been paid more than $2.2 million, not $20,000 as incorrectly reported. Lee was paid $990 an hour in wages by Borrego Health, while working as the state monitor. Borrego Health had requested that the state give it relief from paying the monitor, but claims DHCS ignored the plea.
Stranger things: the Borrego Health Board has named Lee to be the Chief Restructuring Officer (CRO) in the Chapter 11 filing. This is the same person the board previously accused of sabotaging their efforts to comply with the CAP by giving faulty information to the state. So why would they hire him to make more millions if they didn’t trust him?
Other attorneys hired by Borrego Health, like Hooper, Lundy & Bookman, a San Diego law firm, has already collected $1.9, according to Court Documents. Dentons, the special counsel hired to manage Borrego’s restructuring, has already been paid more than $1.2 million.
As the saying goes, “Attorneys are the only ones profiting from a bankruptcy.” Stay tuned.