The U.S. Department of Justice files a lawsuit against New York State and officials involved in administering the state’s Medicaid home-care program, alleging fraud and misconduct in how a large contract is awarded and run. Multiple outlets report that the case focuses on a $10 billion, home health initiative for disabled Medicaid patients and on the role of Public Partnerships LLC (PPL), the company that operates the program.
According to the DOJ allegations described by the outlets, New York officials and the program’s operator allowed a Georgia company to gain control through what the DOJ characterizes as a “sham” or improper bidding process. The DOJ further accuses the companies and involved parties of making false or misleading statements related to their capabilities to take over and administer the program.
The lawsuit is reported as being filed Tuesday in the U.S. District Court for the Eastern District of New York. The outlets characterize the complaint as asserting that state oversight contributed to an environment where fraud could occur, and they describe the disputed conduct as tied to the administration and management of the home-care Medicaid program.
