Both the sale and the settlement were pivotal to the success of the chapter 11 case as they ensure both that there is continuing high quality, culturally competent care to Borrego’s patients and a substantial recovery for creditors. Recently, the Court also approved the sale of substantially all of Borrego's assets to a consortium of FQHCs led by Desert Aids Project d/b/a DAP Health for more than $50 million in value to the estate. Forced into chapter 11 by a threat by the California Medi-Cal program to suspend 100% of Borrego's payments, the Dentons’ team expediently put into place and executed a strategy which, initially obtained court orders stopping the government’s efforts to stop paying for Medi-Cal services, and later culminated in the Court's approval of a comprehensive and favorable settlement between Borrego and the California Department of Health Care Services. As of the petition date, Borrego was a nonprofit Federally Qualified Health Center that provided health care services to low income and rural patients in San Diego and Riverside Counties through a system of eighteen (18) clinics, two (2) pharmacies, and six (6) mobile units. Vincent Medical Center in Los Angeles, and to set aside beds at Seton Medical Center in the Bay Area to treat COVID-19 patients.īorrego Community Health Foundation: Currently leads the representation of Borrego Community Health Foundation (“Borrego”) in its chapter 11 case. During the cases, Verity also collaborated with the Attorneys for the California Governor’s Office of Emergency Services to reopen St. The sale of Verity Health’s nonprofit assets raised unique issues related to the transfer of healthcare assets in bankruptcy, including the scope of the powers of the Attorney General and the transfer of medical provider agreements, which led to groundbreaking decisions. During the cases, the Court approved the sale of Verity’s hospitals and senior living facility, and confirmed the joint plan of liquidation, which resolved complex litigation and created a liquidating trust for the benefit of creditors.
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