Following approval by the U.S. Bankruptcy Court, DAP Health is gearing up to score regulatory approval from the Health Resources and Services Administration (HRSA) for its acquisition of Borrego Health, the last step before it can take complete control over the latter’s clinics.

Based in California’s Coachella Valley, DAP Health is a federally-qualified health center that provides primary and preventative care to all patients, regardless of their ability to pay or form of health insurance. Borrego Health is also an FQHC with 32 clinics serving communities in Riverside, San Diego, and San Bernardino.

Borrego Health began searching for another FQHC to acquire it in November 2022 and selected DAP Health’s bid in February. The court approval, announced on March 1, is a key step in the process, say both organizations.

“Today's decision begins a year of convening and collaborating with our partners to protect healthcare access for Borrego's patients. We look forward to working alongside leadership at each organization to create the path forward,” said David Brinkman, chief executive officer of DAP Health, in a statement.

The court also approved an agreement between Borrego Health and the California Department of Health Care Services (DHCS) that will ensure a smooth transition of the former’s operations to DAP Health. This also resolves pending litigation between Borrego Health and DHCS.

In becoming part of DAP Health, Borrego Health aims to continue providing patients with access to a health home.

“Each of the communities our organizations serve have different needs, and I’m looking forward to seeing how our combined expertise and resources will strengthen access to quality care across the region and improve the lives of those who count on us,” said Rose MacIsaac, chief executive officer of Borrego Health, in a statement.

DAP Health’s partners Innercare and Neighborhood Healthcare will provide administrative and operational support upon completion of the acquisition.

“We’re proud to be part of the DAP Health alliance and expand our quality, compassionate, whole-person care to more families in El Cajon, Escondido, Nuevo, and San Jacinto, regardless of their circumstances,” said Dr. Rakesh Patel, chief executive officer of Neighborhood Healthcare. “This alliance is a key example of how to increase access to care by being better together.”

No financial details were disclosed.

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