Representative Elise Stefanik is urging federal authorities to intensify their investigation into alleged bid-rigging by Governor Kathy Hochul's administration concerning a $1 billion Medicaid homecare contract.
This call to action follows the emergence of emails indicating that state officials engaged with representatives of the contract's eventual winner, Public Partnerships LLC (PPL), a full two weeks before the bidding process officially commenced.
Stefanik, a Republican from upstate New York who is preparing to challenge Democratic Governor Hochul in the upcoming gubernatorial race, addressed a letter to U.S. Attorney General Pamela Bondi on December 9. In her letter, she highlighted "recent bombshell allegations," including an email dated April 4, 2024, from Amanda Lothrop, the Medicaid Chief Operating Officer at the state Health Department, to senior executives at PPL.
According to The New York Post, this email was obtained through a Freedom of Information Law request by the Empire Center for Public Policy, a government watchdog group. In the email, Lothrop extended an invitation to PPL representatives for an online meeting with her and three other state officials, stating, "Thanks so much for taking time to connect. We look forward to continuing the discussion about your FMS [financial management services] experience and our NY considerations."
Stefanik contends that this email "provides further validation" of meetings between state officials and PPL prior to the state Legislature's authorization of the bidding process. This occurred well before PPL was selected to manage payroll services for the $11 billion Consumer Directed Personal Assistance Program.
Furthermore, Stefanik pointed out that state Senators Jim Skoufis and Gustavo Rivera have accused Governor Hochul of retaliating against them for pursuing a state investigation into the contract, including Hochul's veto of several bills proposed by Skoufis.
"As the [DOJ] continues its inquiry, I respectfully urge your office to ensure that this investigation proceeds with urgency and transparency and with the full weight of federal oversight," Stefanik wrote. She emphasized the importance of accountability, given the substantial funds involved, the vulnerable population served, and the "disturbing pattern of alleged retaliation and opacity emerging from Governor Hochuls office."
The Department of Justice has declined to comment on the matter. In a related development, a state appellate panel dismissed a lawsuit in October, which had been filed by opponents of the consolidation contract, alleging it was awarded through a "sham bidding process." Representatives for Governor Hochul have consistently maintained that the process was competitive.
"No matter what false claims anyone makes, heres the bottom line: New York State rescued CDPAP from a fiscal crisis, protected home care for the people who need it, and saved $1 billion this year for taxpayers," stated Hochul spokesman Sam Spokony. He further asserted that the email from Lothrop "obviously had nothing to do with the procurement process that was implemented by the Department of Health after being passed by the State Legislature."
As the investigation unfolds, questions remain about the integrity of the bidding process and the potential implications for Governor Hochul's administration. The outcome of this inquiry could have significant ramifications for both the state's political landscape and the future of Medicaid homecare services in New York.
Login