Dec 16, 2024, 12:00 AM
Dec 16, 2024, 12:00 AM

New York accused of rigging bidding for $9 billion home health aide overhaul

Highlights
  • New York state faces multiple lawsuits alleging rigged bidding for a major homecare program overhaul.
  • The healthcare union 1199SEIU is accused of collaborating with Public Partnerships LLC to secure the contract.
  • Critics argue the bidding process lacked transparency, raising concerns over the program's integrity.
Story

In New York, the state is embroiled in controversy over its $9 billion overhaul of the Consumer Directed Personal Assistance Program (CDPAP), facing multiple lawsuits. The most recent lawsuit alleges collusion in the bidding process, particularly involving the powerful healthcare union 1199SEIU and Public Partnerships LLC, the firm selected for the contract. Critics, including existing middleman firms, allege that the bidding was established in favor of Public Partnerships LLC before the state department even concluded accepting proposals. The accusations surfaced after a Zoom call in June where Rona Shapiro, a vice president of the 1199SEIU, reportedly indicated that PPL would be awarded the contract despite the ongoing proposal period. Lawyers representing Mark's Homecare LLC claim that Shapiro was privy to insider information regarding the Department of Health's (DOH) selection process. Additional concerns have arisen about the DOH providing the union with a list of all fiscal intermediaries, raising suspicions of unfair advantages in the bidding. The backdrop of this situation involves Gov. Kathy Hochul's initiative to reform the CDPAP, aiming to eliminate nearly 700 middlemen firms in favor of a single contractor that would streamline payment services. This plan was intended to address allegations of fraud and inefficiency that have plagued the program. However, stakeholders have criticized the decision-making process leading to the contract award to PPL, arguing it lacked transparency and fairness. As the situation unfolds, the state continues to defend its procurement process, emphasizing adherence to the standard protocols outlined by the State Legislature. Despite Hochul's administration denying allegations of bid rigging, the lawsuits have raised questions about the integrity of the program overhaul, which is slated to transfer approximately 250,000 CDPAP recipients to PPL’s services beginning January 6, 2025. The outcome of these legal challenges will likely have significant implications for home care services in New York, impacting caregivers and patients alike.

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