(The Center Square) — New York Gov. Kathy Hochul has picked a Georgia-based company to take over the state's $9 billion home care industry, despite ongoing legal challenges and claims that the move will negatively impact patient care.
Hochul announced on Tuesday that Partnerships LLC will take over management of the state's Consumer Directed Personal Assistance Program, a nearly 30-year-old service that funds home care services for the state's low-income elderly and disabled.
The governor said the changes, approved as part of the state's $223 billion fiscal year 2025 budget, will improve oversight of home care services, reduce the potential for fraud or abuse and save taxpayers money.
"We’re committed to protecting home care users, supporting caregivers and ensuring the vital CDPAP program continues serving the New Yorkers who rely on it," Hochul said in a statement. "Our plan will deliver a stronger CDPAP and leverage a diverse, statewide partnership to ensure the high-quality, personalized care that New Yorkers need."
New York's home care program, which serves about 250,000 elderly and disabled New Yorkers, is currently managed by more than 600 companies that oversee payroll and other administrative responsibilities.
Under the contract, Public Partnerships will take over management of the program in 2025 and will oversee about two dozen regional home care companies, according to the Hochul administration.
Other details of the contract, including the final price tag, were not disclosed by the Hochul administration.
However, the award of the contract comes over the objection of groups representing some of the home care businesses that would be hedged out of the program. The Alliance to Protect Home Care argues that the plan will gut Medicaid and kill jobs in the home care sector, leaving workers and vulnerable people in the wake.
The group has spent hundreds of thousands of dollars in a blitz of print, online and TV advertisements blasting Hochul’s plan to move administration of the home care program under the control of a single entity.
"We are making it clear to all New Yorker's just what is at stake with Governor Hochul's $40-billion backroom deal," Bryan O'Malley, the group's executive director, said in a recent statement. "Governor Hochul should listen to disability and Medicaid advocates, the elected officials from her own party, and New Yorkers, and put a stop to this plan before she destroys this vital home care program and harms the people who depend on it."
Lawmakers have also criticized the plan, some pointing out that the company is facing legal challenges in other states where they were selected as a statewide vendor for home care services.
"My primary concerns are protecting the enrollees in this program, to avoid disruptions to the essential services they receive, and ensuring that the workers providing these services are paid appropriately and on time," said state Sen. Gustavo Rivera, a Bronx Democrat. "With the selection of PPL as the statewide fiscal intermediary these concerns have not been addressed."
In a statement, PPL's President and Chief Executive Officer Vince Coppola said the company is "excited and proud" to be awarded the contract and promised a smooth transition to the new system of home care oversight.
"Our focus is on ensuring minimal disruption to consumers and caregivers as we work to deliver a culturally sensitive process that will help sustain the program for the many New Yorkers who rely on it," Coppola said.
A labor union representing healthcare workers also said it supports the changes, suggesting they will protect caregivers, improve patient services and save taxpayers money.
"We know that taxpayer dollars earmarked for home care are often misspent on excessive administrative costs and million-dollar executive salaries," George Gresham, president of the 1199SEIU United Healthcare Workers East, said in a statement. "Thoughtfully transitioning this program is key to ensuring that vulnerable New Yorkers can continue living with dignity in their own homes – and also protecting the caregivers who provide so much support for seniors and those living with disabilities."
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