Staff Reports
The Department of Justice sued New York this week over what it calls a “backroom deal” in the state’s $10 billion home-care program. The civil complaint names the New York State Department of Health, Commissioner Dr. James McDonald, Medicaid Director Amir Bassiri, and Public Partnerships LLC (PPL). The DOJ says the state rigged the contract and that PPL then pocketed millions meant for patient care.
What the DOJ says happened
According to the lawsuit filed June 16, 2026 in federal court in Brooklyn, the procurement was a sham. The complaint alleges state officials steered the single, statewide CDPAP contract to PPL instead of running a fair competition. The DOJ says PPL lied about staffing, software, and readiness, then played an “hourly rate game” to keep money that was meant for caregivers and patients.
How taxpayers and patients were hurt
This is not small change. CDPAP covers roughly a quarter-million patients and hundreds of thousands of caregivers. The DOJ argues that even tiny markups per hour add up into “millions of dollars” gone from Medicaid’s direct-care dollars. If true, it means less care for the disabled and elderly and more money in the pockets of a favored vendor — all on the public dime.
Politics, blame, and federal enforcement
New York officials pushed back and called the suit political, while PPL says it will defend itself in court. Meanwhile, DOJ leaders publicly accused the state of betraying the public trust. If you like government pick-your-favorite-business schemes, this is the textbook example — pick a vendor, promise savings, and then watch the savings evaporate while care suffers.
What to watch next
The lawsuit asks for a court order to stop wrongful billing and misrepresentations and seeks other relief that could include money returned to taxpayers. Watch the federal docket for motions on injunctive relief and for discovery that could expose internal chats and emails. This case matters because it tests whether federal law can stop state-run deals that hurt patients and raid Medicaid funds. New Yorkers and taxpayers should demand clear answers and real fixes — not excuses and spin.
