A state senator on Thursday released evidence that he says could prove accusations that Gov. Kathy Hochul\u00a0hand-picked the company that recently took over a $9 billion Medicaid home care program.\u00a0<\/p>\n
Public Partnerships LLC became the single fiduciary for the Consumer Directed Personal Assistance Program, or CDPAP, starting April 1.<\/p>\n
Senate Investigations & Government Operations Committee chair James Skoufis said he has proof\u00a0that two early drafts of last year\u2019s budget from the Hochul’s office named specific companies for the state to contract with to oversee this program.<\/p>\n
“One draft included PPL, another draft included a different company, Maximus,” Skoufis told reporters. “There were multiple efforts to provide a $9 billion contract in a no-bid fashion that the Senate was able to get removed in negotiations.”<\/p>\n
Skoufis and Senate Health Committee chair Gustavo Rivera led a\u00a0contentious state public hearing in New York City on Thursday as they probe the reasons behind the troubled transition.<\/p>\n
While questioning state Health Commissioner Dr. James McDonald, Skoufis held up draft budget language from last April that names PPL as the company to take over the program \u2014 weeks before the budget was finalized.<\/p>\n
“I really don\u2019t know how to comment about a bill draft, quite frankly, because I never saw that,” McDonald said.<\/p>\n
\nBefore speaking w\/ reporters, @JamesSkoufis<\/a> shares draft budget language he says came from Gov Hochul\u2019s office in early April 2024 that declares the state will contract w\/ @PartnerwithPPL<\/a> to take over CDPAP.<\/p>\n
He adds a 2nd company, Maxim Healthcare, was named in another draft. pic.twitter.com\/3o3Tu1FcTr<\/a><\/p>\n
\u2014 Kate Lisa (@KaitlynnLisa) August 21, 2025<\/a><\/p><\/blockquote>\n
“Back in February, March [of 2024], we were hearing ‘PPL,’ ‘PPL,'” Susan McCormack, executive director, Long Island Center for Independent Living, testified to lawmakers about discussions at the time.<\/p>\n
McDonald said he didn\u2019t know about the draft and wasn’t part of talks to create the law, but the state followed the rules.<\/p>\n
Lawmakers fought a no-bid process, but open bidding in this case was exempted from comptroller oversight, and ultimately, PPL was awarded the $9 billion contract.\u00a0<\/p>\n
Patty Byrnes, PPL\u2019s vice president of government relations, also said she didn\u2019t know of conversations between the company and governor’s office ahead of time.<\/p>\n
“There was no conversations,” she said. “We were just following the legislative process.”<\/p>\n
A spokesperson with the governor’s office said the shift to a single fiscal intermediary went through a standard procurement process at the state Health Department, and followed the law passed by the state Legislature.<\/p>\n
“No state officials knew who would be selected until the procurement process was complete,” Hochul’s spokesperson said in a statement. “The bottom line here is that New York saved CDPAP from a fiscal crisis by removing hundreds of wasteful administrative middlemen \u2013 including one who recently pled guilty to a $68 million fraud scheme.\u00a0Now that we’ve ended the ‘wild west’ of the old system and moved to single fiscal intermediary with strong state oversight, New York can effectively\u00a0protect\u00a0CDPAP\u00a0for home care users and workers and ensure the program delivers the best results for those who need it.”<\/p>\n
Lawmakers grew frustrated PPL sent Byrnes, a government relations executive, instead of its new CEO, or president, to testify.<\/p>\n
Byrnes and the health commissioner would not answer many of lawmakers’ questions, and claimed they didn\u2019t have the requested information after the hearing was delayed a month\u00a0to give them extra time to prepare<\/a>.<\/p>\n
Skoufis said it was unacceptable the health commissioner and PPL were not ready with the information requested.<\/p>\n
“The first four hours of this hearing, 80% of it was a complete waste of our time,” Skoufis said. “And so we’re very unsatisfied, and there is more to come.”<\/p>\n
The lawmakers investigating the transition said they\u2019re considering issuing subpoenas after the state health commissioner and PPL wouldn’t answer most of their questions.<\/p>\n
“We need to consider what our next steps are, and there will be next steps,” Skoufis said.<\/p>\n
Skoufis and Rivera added they will discuss their next steps to investigate the transition in the coming months.<\/p>\n
“Our goal, as I said back in 2024 when we passed this budget, I said, ‘we’re going to keep a close eye on it,’ and I said ‘we’re going to do oversight,’ and that’s exactly what the hell we’re doing today,” Rivera said.<\/p>\n
Byrnes and McDonald refused to take questions after the hearing.<\/p>\n
State budget officials said CDPAP savings are on track to save $500 million this fiscal year, as adopted in the latest $254 billion budget.<\/p>\n