Earlier this week, New York State and Public Partnerships LLC (PPL), the entity selected to become the Statewide Fiscal Intermediary (SFI) as of April 1, 2025, suffered another roadblock in their efforts to transition New York’s Consumer Directed Personal Assistant Program (CDPA Program) to a single SFI that would assume the fiscal intermediary responsibilities of over 600 entities currently operating in New York. Specifically, on January 28, a New York Supreme Court Justice in Nassau County granted a temporary restraining order (TRO) request filed by Caring Professionals, Inc. and the Consumer Directed Personal Assistance Association of New York State (CDPAANYS) (collectively, “Plaintiffs”) against the New York Department of Health (DOH) in connection with the DOH’s December 6, 2024, transition memorandum.

The CDPA Program, funded through Medicaid, allows chronically ill and/or disabled individuals (Consumers) to engage and employ personal assistants (from recruitment through termination) to provide home health services for them, while a fiscal intermediary (FI) performs wage and benefit processing. The NY Budget states that as of April 1, 2025, there will be a single SFI, defined as “an entity that provides fiscal intermediary services and has a contract for providing such services” with the DOH that “is selected through the procurement process.”

As the name suggests, the TRO temporarily restrains the DOH from taking any adverse action or issuing sanctions or penalties against Caring Professionals and all fiscal intermediary members of CDPAANYS, including but not limited to efforts to have them expelled or terminated from the Medicaid program, for failing to comply with the DOH’s January 15, 2025, deadline to transfer certain relevant health and other data to the DOH, managed care plans, or PPL. However, this TRO does not stop the implementation of the SFI program.

Unless revoked, the TRO will remain in effect until the court holds oral argument on Plaintiffs’ broader preliminary injunction request on March 4, 2025. The preliminary injunction, if granted, would prevent the DOH from enforcing the requirements set forth in the transition memorandum against Plaintiffs. It would also prevent the DOH from retaliating against Plaintiffs for failing to comply with the transition memorandum.

While the TRO prohibits the DOH from taking action against Plaintiffs only, all FIs operating in New York should consult experienced counsel about their legal options in light of the TRO.

Littler is continuing to monitor all legal developments concerning the DOH’s single SFI and will report developments as they occur.