U.S. Justice Department Sues New York and Contractor Over Medicaid Home Care Program

U.S. Justice Department filed a civil lawsuit in Brooklyn federal court on June 16, 2026, accusing New York state officials of facilitating fraud in a Medicaid program that provides home care to disabled patients. The suit names the New York Department of Health, its Medicaid director, and Public Partnerships LLC, a company based in Alpharetta, Georgia, as defendants.

The federal government asked the court to order an end to any wrongdoing and to appoint a receiver to run Public Partnerships LLC. The program is a $10 billion initiative. Public Partnerships LLC was awarded the contract in late 2024.

The lawsuit claims Public Partnerships generated millions of dollars in illegal profits through its operation of the program. It also claims the company and New York officials repeatedly misrepresented when the company’s contract would begin, causing severe disruptions to patient care statewide, and ignored limits on what the company was entitled to pocket in profits, spoiling a plan to save hundreds of millions of dollars.

The Justice Department stated the company took advantage of lax oversight by the state to raid the program of millions of dollars by billing at excessive hourly rates.

Assistant Attorney General Colin M. ” Public Partnerships LLC stated it was selected through a transparent, competitive process to strengthen and modernize New York’s program. The company stated the program serves more than 250,000 New Yorkers who rely on home care and hundreds of thousands of caregivers.

The department stated the courts have confirmed the hiring of Public Partnerships was accomplished through a fair and legally sound competitive bidding process. It stated it looks forward to the day when disingenuous attacks stop and New York can be viewed as a model for controlling costs and improving quality of care.