New York's $11B Medicaid Contractor Accused of Failures in Other States

Public Partnerships LLC (PPL) has faced 'egregious fiscal and operational failures' in managing home care programs in several states before landing a controversial no-bid contract in New York.

Published on Mar. 9, 2026

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Georgia-based Public Partnerships LLC (PPL) was awarded an $11 billion Medicaid contract in New York in 2024 to administer the state's Consumer Directed Personal Assistance Program (CDPAP). However, the company has faced accusations of 'egregious fiscal and operational failures' in managing similar home care programs in at least six other states, leading to contract terminations or non-renewals. Consumers and caregivers in New York have complained about issues like missed or delayed paychecks, service interruptions, technical glitches, and overwhelmed customer service since PPL took over the program.

Why it matters

The PPL contract in New York has come under scrutiny due to allegations of conflicts of interest, a potentially rigged bidding process, and the company's troubled history in other states. This raises concerns about the state's ability to properly oversee and manage a critical Medicaid program that serves vulnerable populations. New York's Medicaid spending is already the highest in the nation, and any mismanagement or fraud could further drive up costs for taxpayers.

The details

Before landing the $11 billion contract in New York, PPL had lost contracts in six other states after sometimes disastrous rollouts of its systems. In New Jersey, PPL was accused of 'egregious fiscal and operational failures' in managing two Department of Human Services programs, leading to an eventual move to other contractors. The 2013 transition to PPL in Pennsylvania was described as a 'disaster' that led to a 2017 class action lawsuit, and their contract ended in 2021 without renewal. PPL also had contracts in Washington, West Virginia, Virginia, and Tennessee that have since been terminated or lost.

  • In April 2025, PPL took over administering New York's CDPAP program.
  • In 2024, PPL submitted a Request For Proposal (RFP) to New York State for the $11 billion CDPAP contract.

The players

Public Partnerships LLC (PPL)

A Georgia-based company that was awarded an $11 billion Medicaid contract in New York to administer the state's Consumer Directed Personal Assistance Program (CDPAP).

Public Consulting Group (PCG)

A Massachusetts-based company that owns 26% of PPL and has over $630 million in current and former contracts with the New York State Department of Health, raising concerns about conflicts of interest.

Julian Hagmann

The CEO of Caring Professionals Inc., one of the 'fiscal intermediaries' who previously arranged home care in New York but have been cut out by PPL. Hagmann is suing PPL, calling them a 'state sanctioned monopoly.'

Kathy Hochul

The Democratic governor of New York who oversaw PPL's $11 billion contract award.

Dr. Mehmet Oz

The federal Medicaid czar who is launching a probe into New York's Medicaid program, which he claims is rife with waste, fraud and abuse.

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What they’re saying

“Providers have been warning for years that CDPAP needed guardrails. Instead, when the program became seen as a massive revenue stream, the state effectively handed it to the highest bidder, one that is closely connected to the consulting firm that has been writing policy for the Department of Health.”

— Julian Hagmann, Healthcare executive and critic suing PPL (The New York Post)

“The contract award to PPL was rife with conflicts of interest due to the multiple PPL-related entities and services that are provided by those entities to DOH. PPL's horrendous history of operating Medicaid programs in other states should have disqualified PPL from the award.”

— Julian Hagmann, Healthcare executive and critic suing PPL (New York State Senate hearing)

What’s next

The US Department of Justice is gearing up to slap Governor Kathy Hochul's administration with a civil suit over the handling of the CDPAP contract and the award to PPL.

The takeaway

This case highlights the need for greater oversight and transparency in the awarding of lucrative Medicaid contracts, especially to companies with a history of operational failures in other states. The potential conflicts of interest and allegations of a rigged bidding process raise serious concerns about New York's ability to properly manage its bloated Medicaid program and protect vulnerable populations who rely on these critical services.