More Executive Compensation Audit Letters in the Mail

In September 2011, more New York not-for-profit Medicaid providers, including many hospitals, have received letters from Governor Andrew Cuomo’s Task Force on Not-For Profit Entities. These letters are requesting that extensive information and documents be submitted for review. In August, Governor Cuomo announced the formation of the Task Force following reports of excessive compensation being paid to executives of not-for profit entities that receive Medicaid reimbursement or revenue. The Task Force is charged with auditing current compensation levels for not-for-profit executives in New York, but also recommending changes in the program that would further assure that Medicaid dollars are wisely spent and not squandered on excessive executive compensation packages. Notably, preliminary indications are that the information submitted by entities in response to Task Force letters might have to be disclosed to the public, if sought via a Freedom of Information Law (FOIL) requests. While some of the information may be blocked from re-disclosure based on various exemptions in the FOIL rules, the situation is still evolving. Click on the link below for further information about the Task Force audits. Please contact one of our Hancock Estabrook Health Care Practice attorneys (listed on the right-hand side of this page) for assistance on how to respond to a Task Force letter.

http://www.ins.state.ny.us/press/2011/p1108251.htm