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Employer of Home Care Services Reverses Evidence, Sparking Apprehensions over Alleged Manipulation in $11 Billion Contract

PPL's Vice President admits to initial negotiations with New York's health department, contradicting a previous oath defiance from last month.

Employer in Home Care Sector Reverses Testimony, Increases Suspicions of Fixed $11 Billion Contract...
Employer in Home Care Sector Reverses Testimony, Increases Suspicions of Fixed $11 Billion Contract Bid

Employer of Home Care Services Reverses Evidence, Sparking Apprehensions over Alleged Manipulation in $11 Billion Contract

Governor Kathy Hochul's administration announced last year that Public Partnerships, LLC (PPL) would take over New York's state-funded home health care program. However, concerns have been raised about a potentially unfair playing field, with lawmakers and advocates questioning the competitive bidding process.

The shift to a single fiscal intermediary for the home care program went through a standard procurement process at the Department of Health, following a law passed by the State Legislature. PPL was awarded the contract after this process, but the rollout has been rocky. Patients and workers have reported missed paychecks, leaked personal information, unreturned calls, and malfunctioning software.

Recently, a letter was released containing allegations that New York state officials may have rigged the process for awarding the $11 billion home health care contract. In response, PPL vice president Patty Byrnes conceded that her previous testimony was not accurate. This complete reversal of PPL's testimony confirms the serious doubts held by State Senator James Skoufis about the accuracy of their statements under oath.

Skoufis has been investigating the process, and at a hearing last month, he asked Byrnes whether there had been any contact between the company and state government before the law was changed. Byrnes acknowledged that PPL had "general communications with DOH staff" in late March and early April, the weeks immediately before the law was changed that allowed PPL to win the contract.

Earlier drafts of the legislation overhauling the home care program would have awarded the contract to PPL without a bidding process, according to Skoufis. However, these claims were dismissed in a ruling in March by State court Justice Verna Saunders, who stated they were based on conjecture, speculation, and unsubstantiated assertions.

US Representative Ritchie Torres called the bidding process a "dog-and-pony show with a predetermined outcome" in a letter to state and federal regulators last December. No State officials knew who would be selected until the procurement process was complete, according to Hochul spokesperson Sam Spokony. He denied that there was any collusion between the state and PPL.

Skoufis plans to meet with legislative leadership to determine next steps in investigating "what the Department of Health and PPL knew and when they knew it." The health insurer selected by PPL has faced accusations of withholding money meant for workers and denying coverage for medically necessary treatment. As the investigation continues, the future of New York's home health care program remains uncertain.

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