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Published on 12/22/2022 in the Prospect News Distressed Debt Daily.

Desert Home Care acting trustee objects to employment of professionals

Chicago, Dec. 22 –The acting trustee for the bankruptcy case for Borrego Community Health Foundation, which does business as Desert Home Care, objects to the debtor’s motion to retain and compensate certain professionals, according to an objection filed with the U.S. Bankruptcy Court for the Southern District of California.

First, the description of the various professionals is not currently detailed enough to make an accurate analysis.

Aside from the need for evidentiary support, based on what has been provided by Desert Home, the acting trustee notes that the employment of Feldesman Tucker Leifer Fidell, LLP as additional health care regulatory counsel (when health care regulatory counsel has already been appointed) for $25,000 per month seems unnecessary.

Two firms are listed as providers of claims quantification and claims auditing and revenue cycle enhancement – and it is unclear if these are duplications of effort.

There are also two communications firms. The trustee points out that an auction and sale are expected in the very near future and communications consultants for $50,000 per month seems unnecessary. Further, the debtor already employs Ankura to assist with communications.

Acting trustee Tiffany L. Carroll reserves all rights to further object when more information is provided.

The San Diego-based provider of in-home skilled nursing services filed Chapter 11 bankruptcy on Sept. 12 under case number 22-02384.


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