The Second Circuit on Tuesday said New York State “had a rational basis” for switching to a single, statewide provider for home care services and affirmed dismissal of a case challenging the decision.
The court’s unsigned opinion rejected arguments from four fiscal intermediaries claiming the state violated the constitution when it eviscerated their private property—their contracts with the Department of Health—and refused to compensate them for the loss.
The state’s decision “neither effected a taking of private property nor disrupted Plaintiffs’ reasonable expectations under their contracts,” the court said.
The state in April began using Public Partnerships LLC to handle …