California regulators have agreed to write off more than $90 million in debt owed by Borrego Health, the nonprofit medical provider that was the subject of a long-running state and federal fraud investigation that has yet to result in any criminal charges., announced Tuesday that it had finalized a settlement with the California Department of Health Care Services.
“Nonetheless, we are pleased that our patients will maintain access to essential health care services and our employees will have continued employment,” she added. “DAP Health stood out as a successor due to their unwavering commitment to preserving continuity of care for Borrego’s patients.” A bankruptcy judge will consider its proposal this month. Officials say the move would be in the best interests of health care provider, its creditors and its patients.
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