BARCLAY DAMON GETS WIN FOR DME PROVIDERS AGAINST NEW YORK STATE
A group of durable medical-equipment providers sought representation from Barclay Damon in a lawsuit against New York State. When faced with dramatic cuts in Medicaid reimbursement for incontinence supplies, the plaintiffs sought an injunction in an Article 78 proceeding, alleging the cuts were so severe that local home-delivery-service networks would be eliminated, leaving a de facto mail-order-only system.
The state’s reimbursement methodology centered on a “preferred” contract awarded to a Minnesota shipping company that offered low prices, but did not have the benefits of home delivery and customer service offered by the existing community-based delivery network of local providers. The new rate methodology would have eliminated local providers, thereby funneling New York’s millions spent on these critical products to mail-order businesses based in other states.
Thanks to Barclay Damon’s compelling showing of merit and harm, the court agreed the pricing was irrational and the potential harm to the providers and their patients was great. The court then issued a temporary restraining order and a preliminary injunction preventing the pricing from going into effect during the pendency of the litigation.
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