Freedom Care LLC v. New York State Dept. of Health

2025 NY Slip Op 31018(U)
CourtNew York Supreme Court, New York County
DecidedMarch 26, 2025
DocketIndex No. 161036/2024
StatusUnpublished

This text of 2025 NY Slip Op 31018(U) (Freedom Care LLC v. New York State Dept. of Health) is published on Counsel Stack Legal Research, covering New York Supreme Court, New York County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Freedom Care LLC v. New York State Dept. of Health, 2025 NY Slip Op 31018(U) (N.Y. Super. Ct. 2025).

Opinion

Freedom Care LLC v New York State Dept. of Health 2025 NY Slip Op 31018(U) March 26, 2025 Supreme Court, New York County Docket Number: Index No. 161036/2024 Judge: Verna L. Saunders Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication. FILED: NEW YORK COUNTY CLERK 03/27/2025 04:50 PM INDEX NO. 161036/2024 NYSCEF DOC. NO. 160 RECEIVED NYSCEF: 03/27/2025

SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: HON. VERNAL. SAUNDERS, JSC PART 36 Justice ---------------------------------------------------------------------------------X INDEX NO. 161036/2024 FREEDOM CARE LLC, MOTION SEQ. NO. _ _ _00-'-1_ __ Petitioner,

- V- DECISION+ ORDER ON NEW YORK STATE DEPARTMENT OF HEALTH, JAMES V. MOTION MCDONALD, and PUBLIC PARTNERSHIPS LLC, Respondents.

---------------------------------------------------------------------------------X

The following e-filed documents, listed by NYSCEF document number (Motion 001) 2, 25, 26, 27, 29, 31, 32, 33, 34,36,37,38,39,40,41,42,43,44,45,46,47,48,49,50,51,52,53,54,55,56,57,58,59,60,61,62,63,64,65, 66,67,68,69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79,80,81,82,83,84,85,86,87,88,89,90,91,92,93,94,95,96, 98, 99, 100, 110, 111, 124, 126, 127, 128, 129, 130, 131, 132, 133, 134, 135 were read on this motion to/for PRELIMINARY INJUNCTION

Petitioner Freedom Care LLC ("petitioner") commenced this special proceeding against respondents New York State Department of Health ("DOH"), James V. McDonald ("McDonald"), and Public Partnerships LLC ("PPL") seeking to challenge what petitioner claims was a "sham bidding process" that resulted in a contract award to PPL to serve as Statewide Fiscal Intermediary, a position created pursuant to a recent amendment to New York's Consumer Directed Personal Assistance Program ("CDPAP"), codified at Social Services Law§ 365-f (NYSCEF Doc. Nos. !,petition; 7, statute).

As relevant background, petitioner is a fiscal intermediary that provides administrative and financial functions in connection with CDPAP, a service available through the New York State Medicaid Program ("Medicaid"). Through CDPAP, qualified Medicaid beneficiaries can receive home care services by hiring personal assistants to provide at-home personal care or nursing services. Fiscal intermediaries assist with providing administrative services to these Medicaid beneficiaries, consisting of processing personal assistants' wages, benefits, and tax withholdings. They also assist in maintaining related records. To better regulate the program, on April 20, 2024, the New York Legislature amended the CDPAP to move from multiple intermediaries to a single statewide fiscal intermediary to be selected by DOH.

On June 17, 2024, DOH issued Request for Proposals ("RFP") # 20524, seeking competitive proposals from qualified bidders to provide statewide fiscal intermediary services (NYSCEF Doc. No. 8, request for proposals). A third amendment 1 to the RFP was issued on August 7, 2024 (NYSCEF Doc: No. 9, [third]amendment to RFP). The RFP was available to entities "capable of performing statewide fiscal intermediary services with demonstrated cultural

1 Two prior amendments were issued for the RFP on July 19, 2024 (NYSCEF Doc. No. 46) and August 2, 2024

(NYSCEF Doc. No. 2024), extending the deadlines for responses to written questions posted by DOH and submission of proposals. 161036/2024 FREEDOM CARE LLC vs. NEW YORK STATE DEPARTMENT OF HEALTH ET AL Page 1 of8 Motion No. 001

[* 1] 1 of 8 FILED: NEW YORK COUNTY CLERK 03/27/2025 04:50 PM INDEX NO. 161036/2024 NYSCEF DOC. NO. 160 RECEIVED NYSCEF: 03/27/2025

and language competencies specific to the population of consumers and those of the available workforce with experience serving individuals with disabilities." Additionally, eligible bidders had to demonstrate that, as of April 1, 2024, they were "providing services as a fiscal intermediary on a statewide basis in at least one other state."2 (id. at ,i 3.1, minimum qualifications). As detailed in the RFP, the selected statewide fiscal intermediary would be responsible for the delivery of fiscal intermediary services to consumers receiving CDP AP, including: ensuring that subcontractors meet all applicable federal law and regulations; "[s]ubcontracting to facilitate the delivery of fiscal intermediary services to each entity that is a service center for independent living under section 1121 of the New York State Education Law ("EDN") and has been providing fiscal intermediary services since January 1, 2024, or earlier"; and "[s]ubcontracting with at least one entity per NYS DOH MLTC [(managed long term care)] rate setting region, as seen in Attachment D, that has a proven record of delivering services to individuals with disabilities and the senior population and has been providing fiscal intermediary services since January 1, 2012, or earlier." (NYSCEF Doc. No. 8 at ,i 4.0).

On August 7, 2024, DOH released Questions and Answers pertaining to the RFP (NYSCEF Doc. No. 10). According to the DOH's Tabulation of Proposals, certified on August 21, 2024, one hundred thirty-six (136) bids were received in response to the subject RFP (NYSCEF Doc. No. 11, tabulation ofproposals). Petitioner and PPL both submitted bids (NYSCEF Doc. Nos. 11, tabulation ofproposals; 12,petitioner's technical proposal; 13, petitioner's cost proposal).

By letter dated September 30, 2024, DOH informed petitioner that PPL had been the successful vendor with respect to RFP #20524 (NYSCEF Doc. No. 15, non-award letter). Also on September 30, 2024, Governor Hochul's press office announced that PPL had been selected as the Statewide Fiscal Intermediary, indicating that PPL had assembled a "diverse alliance of subcontracted partners" throughout the State, consisting of more than thirty (30) "home care agencies currently active in New York's CDPAP." (NYSCEF Doc. No. 16, September 30, 2024, press release). Pursuant to a subsequent press release, issued on November 12, 2024, the State announced that the statewide partnership was expected to begin in January and take full effect by April 1, 2025; that DOH had conditionally approved twenty-four (24) "partners" to work with PPL, and that the partners collectively operate in all sixty-two (62) counties throughout the state; that additional CDPAP partners would be announced in the coming weeks; and that state officials and partners were beginning a comprehensive transition process (NYSCEF Doc. No. 17, November 12, 2024, press release).

In this special proceeding, petitioner maintains that DO H's award of the Statewide Fiscal Intermediary contract to PPL was made in violation of lawful procedure, affected by errors of law, arbitrary and capricious, and an abuse of discretion. Petitioner argues that the decision to award the contract to PPL was predetermined, as supported by statements allegedly made by an Assembly Member on social media platform X, in April 2024, that suggested PPL would be the winner of the contract, even before DOH issued its RFP in June 2024. Capitol Confidential and

2 The third amended RFP clarified that "'statewide basis in at least one other state' means that the entity is currently engaged in a contract with a single State agency established or designated to administer or supervise the administration of the State's Medicaid program in a state other than New York, to be a provider of fiscal intermediary services throughout the entire geographic area of the subject state." (NYSCEF Doc. No. 9 ,r 3.1). 161036/2024 FREEDOM CARE LLC vs. NEW YORK STATE DEPARTMENT OF HEALTH ET AL Page2 of8 Motion No. 001

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Nobu Next Door, LLC v. Fine Arts Housing, Inc.
833 N.E.2d 191 (New York Court of Appeals, 2005)
Amtrust-NP SFR Venture, LLC v. Vazquez
140 A.D.3d 541 (Appellate Division of the Supreme Court of New York, 2016)
Peckham v. Calogero
911 N.E.2d 813 (New York Court of Appeals, 2009)
61 West 62 Owners Corp. v. CGM EMP LLC
77 A.D.3d 330 (Appellate Division of the Supreme Court of New York, 2010)
1234 Broadway LLC v. West Side SRO Law Project
86 A.D.3d 18 (Appellate Division of the Supreme Court of New York, 2011)
Residential Board of Managers of Columbia Condominium v. Alden
178 A.D.2d 121 (Appellate Division of the Supreme Court of New York, 1991)
Dannasch v. Bifulco
184 A.D.2d 415 (Appellate Division of the Supreme Court of New York, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
2025 NY Slip Op 31018(U), Counsel Stack Legal Research, https://law.counselstack.com/opinion/freedom-care-llc-v-new-york-state-dept-of-health-nysupctnewyork-2025.