As we reported in a prior alert titled NY Upends CDPAP Fiscal Intermediary Framework, the New York State (NYS) budget for fiscal year 2025 significantly changed who can be a Fiscal Intermediary (FI) under the state’s Consumer Directed Personal Assistance Program (CDPAP). This change was made by amendment of Social Services Law (SSL) § 365-f. The SSL amendment eliminated the request for offers process for designating FIs (RFO # 20039), which started in 2019 and had a list of numerous awardees that were awaiting finalized contracts, and replaced it with a new procurement process to designate a single statewide FI (Statewide FI) selected by the NYS Department of Health (DOH).
On June 17, 2024, DOH issued a request for proposals for FI services (RFP # 20524) pursuant to the SSL amendment. This is the RFP under which DOH will select the Statewide FI. The RFP and information related to this new procurement can be found here.
RFP # 20524 includes as the minimum qualifications for bidders: “An entity capable of performing statewide fiscal intermediary services with demonstrated cultural and language competencies specific to the population of consumers and those of the available workforce with experience serving individuals with disabilities and as of April 1st, 2024, is providing services as a fiscal intermediary on a statewide basis in at least one other state.” Emphasis in original. These bidder qualifications, which are also in the SSL amendment, significantly narrow the number of entities eligible to compete for a contract with DOH to be the Statewide FI.
To facilitate the delivery of FI services, the entity selected as the Statewide FI must subcontract with an entity that is a service center for independent living under Education Law § 1121 and has been providing FI services since January 1, 2024 or earlier. In addition, the Statewide FI must subcontract with at least one entity for each of the four (4) rate setting regions listed in the RFP that has a proven record of delivering services to individuals with disabilities and the senior population and has been providing FI services since January 1, 2012. All subcontractors of the Statewide FI must register with DOH within thirty (30) days of being selected. The subcontractors are chosen by the Statewide FI and not through a state RFP or procurement process. However, DOH has the right to review and approve all subcontractor agreements.
This change in the FI framework will likely have a significant impact on the business operations and plans of many entities currently operating as FIs. This is especially the case for current FIs that are not eligible to compete to be the Statewide FI or to be considered for selection as a subcontractor of the Statewide FI because they do not meet the criteria outlined above or otherwise included in the RFP.
Next Steps
Understanding the SSL amendment and the RFP that DOH has issued, as well as future developments regarding the same, is important for current FIs and others to make business decisions going forward.
The RFP has a calendar of events that includes the following:
| EVENT | DATE |
| Deadline for Submission of Written Questions | Questions due by July 2, 2024 by 4:00pm ET |
| Response to Written Questions Posted by DOH | On or about July 19, 2024 |
| Deadline for Submission of Proposals | Proposals due on or before August 2, 2024 by 4:00pm ET |
| Anticipated Contract Start Date for Awarded Statewide Fiscal Intermediary | October 1, 2024 |
Among other things, the deadline to submit written questions to DOH by 4:00pm ET on July 2, 2024, as referenced above, is important. That is a manner to get answers from DOH on questions and requests for clarification concerning the RFP. The DOH email address for the submission of questions, as well as additional instructions, are set forth in Section 5.2 of the RFP. As the RFP states, questions received after the deadline may not be answered.
Should you have any questions regarding the above, please contact the author, the Garfunkel Wild attorney with whom you regularly work, or email us at [email protected].