The U.S. Justice Department has filed a civil lawsuit accusing New York state officials and Public Partnerships LLC of facilitating a $10 billion Medicaid homecare program fraud scheme. The DOJ alleges a sham bidding process allowed the company to abuse the program, costing taxpayers millions.
The lawsuit highlights potential misuse of federal funds and impacts vulnerable populations relying on home care services, while also raising questions about state oversight and procurement processes.
The U.S. Justice Department has filed a civil lawsuit against New York state officials and Public Partnerships LLC, alleging a $10 billion Medicaid homecare program fraud scheme. Federal prosecutors claim that state officials facilitated fraud by allowing the Georgia-based company to gain control of the program through a sham bidding process, leading to alleged abuse and millions in illegal profits.
The lawsuit, filed in Brooklyn federal court, names the state’s Department of Health, its Medicaid director, and Public Partnerships LLC as defendants. The federal government is seeking a court order to end the alleged wrongdoing and appoint a receiver to manage the company.
Public Partnerships LLC has stated it strongly disagrees with the lawsuit's characterizations, asserting it was selected through a transparent, competitive process and is proud of its achievements in modernizing New York's program. The New York Department of Health has called the lawsuit baseless and politically motivated, maintaining that the bidding process was fair and legally sound and that the state has saved taxpayers over $1 billion.
The DOJ alleges that Public Partnerships generated millions in illegal profits by operating the program after being awarded the contract in late 2024. The suit claims that misrepresentations about contract start dates caused disruptions to patient care and that profit limits were ignored, costing taxpayers hundreds of millions of dollars.