Home Care Employer Walks Back Testimony, Fueling Concerns of Rigged $11 Billion Contract

A PPL vice president admitted pre-contract talks between the company and New York’s health department, after denying it under oath last month.

Sam Mellins   ·   September 5, 2025
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| Photos: Venca24 / Wikimedia Commons; Billion Photos; natatravel, vasabii, theeradech sanin, jmccurley51 / Canva | Illustration: Leor Stylar

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A letter released this morning gives new ammunition to critics who allege New York state officials rigged the process for awarding an $11 billion home health care contract.

Last year, Governor Kathy Hochul’s administration announced that it had chosen the company Public Partnerships, LLC (PPL) to take over New York’s state-funded home health care program, which serves hundreds of thousands of elderly and disabled New Yorkers. The move followed a last-minute addition to the state budget that required the state to select one company to run the program, replacing the hundreds of independent companies that had been administering it for years.

PPL took over on April 1, and the rollout has been rocky. Patients and workers have complained of missed paychecks, leaked personal information, unreturned calls, and malfunctioning software. The health insurer that PPL selected to cover workers has faced accusations of keeping money that is supposed to go to workers and denying coverage for medically necessary treatment.

PPL was awarded the contract, which is likely to be very lucrative, after a competitive bidding process that featured offers from several other companies. But lawmakers and advocates have raised concerns that the playing field was tilted in PPL’s favor.

In a letter to state and federal regulators last December, US Representative Ritchie Torres called the bidding process “a dog-and-pony show with a predetermined outcome” and said, “The pre-selection of PPL was the worst kept secret in Albany.” (At the time, Torres was weighing challenging Hochul for governor.)

Other officials have rejected these claims. In a ruling in March, state court Justice Verna Saunders said that the claims of a lawsuit alleging bid rigging “rest on nothing more than conjecture, speculation, and unsubstantiated assertions.”

PPL and the Department of Health, or DOH, have also denied these allegations, including in testimony from PPL vice president Patty Byrnes, which she delivered under oath at a hearing last month.

At that hearing, state Senator James Skoufis asked Byrnes whether there had been any contact between the company and state government before the law was changed.

“The CEO down to you, down to every other employee at the firm, did not have one single phone call, email, text, any conversation prior to enactment of the budget in May?” Skoufis asked her.

“Correct,” Byrnes responded.

In a letter to Skoufis this morning, which his office shared with New York Focus, Byrnes conceded that her testimony was not accurate.

Byrnes acknowledged that PPL had “general communications with DOH staff” in “late March and early April,” the weeks immediately before the law was changed that allowed PPL to win the contract.

This is the first time the company has confirmed it was in communication with the health department, but it’s not exactly a surprise. Earlier drafts of the legislation overhauling the home care program would have awarded the contract to PPL without a bidding process, Skoufis has noted.

“This complete reversal of PPL’s testimony confirms the serious doubts I’ve held about the accuracy of their statements under oath,” Skoufis told New York Focus in a statement, adding that he plans to meet with legislative leadership to determine next steps in investigating “what the Department of Health and PPL knew and when they knew it.”

Hochul spokesperson Sam Spokony denied that there was any collusion between the state and PPL.

“The shift to a single fiscal intermediary went through a standard procurement process at DOH, following the law passed by the State Legislature — and no State officials knew who would be selected until the procurement process was complete,” he said.

This story was updated with a statement from Senator James Skoufis.

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Sam Mellins is senior reporter at New York Focus, which he has been a part of since launch day. His reporting has also appeared in The San Francisco Chronicle, The Intercept, THE CITY, and The Nation. Reach him on Signal: mellins.613
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