State lawmakers said they will press for a fuller accounting after a vendor involved in the state’s $11 billion Medicaid home care overhaul acknowledged that earlier sworn testimony denying contact with state officials was inaccurate.
Public Partnerships, LLC — the firm tapped to serve as the single fiscal intermediary for New York’s Consumer Directed Personal Assistance Program (CDPAP) — told state senators in a newly disclosed letter that there were “general communications with DOH staff” in late March and early April, a period when the state was considering consolidating payment services. The letter, which senators obtained, said prior statements denying such contact “were not accurate.”
The admission deepens scrutiny of the process by which the Hochul administration and the state Department of Health altered law and moved to a single fiscal intermediary for the popular home care program, a change critics say was embedded in last year’s budget negotiations. State Sen. Steven Rhoads (R-Nassau) called the revelation troubling, saying in a statement that “something here stinks” and that families and workers “deserve to know the substance of those communications; who was involved; whether they influenced the bid drafting and selection process and if so, whether anyone in the Hochul Administration or her donors benefited as a result.”
Senate investigators focused last month on the administration’s handling of the program’s transition, which lawmakers and advocates say produced missed paychecks and administrative chaos for hundreds of thousands of home care aides and recipients as hundreds of fiscal intermediaries were consolidated into a single vendor. Senate investigators co-chaired the hearing: Investigations Committee Chair Jim Skoufis (D-Orange) and Health Committee Chair Gustavo Rivera (D-Bronx) said the letter raises additional questions and promised follow-up.
At last month’s hearing, Patty Byrnes, vice president of government relations for PPL, had denied under oath that the company had been in contact with Department of Health staff before the enactment of the budget. In the later letter to senators, Byrnes said those earlier statements were inaccurate and acknowledged communications took place as the state considered moving to a single fiscal intermediary program.
Health Commissioner Jim McDonald, testifying at the same hearing, likewise denied prior contact between the department and the vendor, saying, “New York is a big state. You hear a lot in New York all the time,” and that his team conducted an “honest [request for proposals] and an honest bid and did an honest evaluation.” A Department of Health spokesperson reiterated that the commissioner “was not aware of any communications between Department of Health staff and PPL that occurred prior to the procurement process.”
A spokesperson for Gov. Kathy Hochul did not directly address the vendor’s admission. In earlier statements, the governor’s office said the shift to a single fiscal intermediary followed a standard procurement process at the Department of Health and that no state officials knew which vendor would be selected until procurement was complete.
PPL has said it is cooperating with the inquiry but declined further comment when contacted. Skoufis said the company has been cooperative but added that subpoenas remain a possibility as investigators seek to determine who communicated with whom and whether those discussions influenced drafting of legislation or the selection process.
Lawmakers and advocates say the stakes are high. CDPAP allows eligible Medicaid recipients to hire family members and other caregivers directly, and fiscal intermediaries handle payroll and other administrative functions. The consolidation to a single vendor was intended to streamline services, but the rollout prompted widespread complaints from home care aides and recipients about delayed or missed payments and disruptions to care.
Rivera said PPL’s handling of the transition had been “unacceptable” and vowed the company would be “taken to task to ensure that New Yorkers receive reliable home care from workers who are paid appropriately.” Skoufis said the new disclosures — amendments to prior testimony and the vendor’s letter — only increase the number of outstanding questions investigators must answer.
The next steps for the investigation could include subpoenas for documents and testimony, according to senators involved in the probe. Lawmakers are seeking the substance of the communications the vendor acknowledged, the identities of those involved, and whether any communications influenced the bid drafting or selection process.
The admission by PPL adds to a broader review of how the contract was structured and executed during last year’s budget process. State officials maintain that procurement rules were followed; lawmakers say the recently disclosed communications warrant further inquiry to ensure transparency and accountability in decisions affecting a program that serves vulnerable New Yorkers.
PPL’s letter and subsequent lawmaker statements have set the stage for expanded scrutiny in Albany as investigators attempt to reconcile conflicting accounts given under oath and determine whether any procedural or ethical lapses occurred in the lead-up to the contract award. The investigation is ongoing.