Borrego Community Health Foundation (Borrego Health) filed for chapter 11 bankruptcy protection on September 12, 2022, in the US Southern District of California (case no. 22-02384). Borrego Health claims assets of approximately $50-100 million, and liabilities of approximately $50-100 million. Formerly, Borrego Health was asserted to be the largest federally qualified health care (FQHC) non-profit organization operating in the nation.
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Most of its production income allegedly originated from various schemes of abuses and fraud related to dental encounter fee agreements, by subcontracted private dentists.
Unlike typical subcontracted dental care from FQHCs, these uniquely constructed agreements by Borrego Health paid private dental providers on an encounter fee basis, and not via a fee-for-service methodology. As such, without intensive oversight by Borrego Health’s chief dental officer, Dr. Timothy S. Martinez, and his subordinate staff, fraud and abuses were seemingly encouraged. The FBI raided Borrego Health and its retained billing contractor, Premier Healthcare Management, on October 20, 2020.
One of the alleged more egregious contracted dental providers was Dr. Husam Aldairi and 40/30 Dental, which the new administration of Borrego Health has sued in a civil legal action and disputed him as a creditor. His extensive disciplinary actions…
