DOJ Sues NY Health Department and Vendor Over Alleged CDPAP Medicaid Scheme

The Justice Department filed a federal suit in the Eastern District of New York against New York's Department of Health, Medicaid Director Amir Bassiri, and Public Partnerships LLC, alleging a sham bidding process and misleading representations that allowed the vendor to collect millions in unauthorized profits from the state’s $10 billion CDPAP Medicaid home-care program. The suit seeks to halt further misrepresentations and unlawful charges and to safeguard federal funds, noting that the transition to a single intermediary disrupted patient care and inflated profits; CDPAP provides home care via lay caregivers to Medicaid patients with disabilities, with New York centralizing management in 2024.