New York City, embattled by the effects of a recent increase in migrants, has decided to not renew the contract with care provider DocGo.
The contract, set to expire in May, paid the medical company to provide care to about 3,600 migrants living in the city. Reports say the company faced accusations of wasting funds and mistreating migrants.
DocGo Contract
Previously, Mayor of New York City Eric Adams directed his administration to offer medical company DocGo a $432 million no-bid contract to care for asylum seekers and migrant arrivals in the city.
A report from the New York Times highlights accusations the company was hiring unlicensed security guards, wasting food, and had incidents of migrant mistreatment.
Investigation
New York Attorney General Letitia James launched an investigation into the company in August over claims of mistreatment, first reported by the New York Times.
At the time, the probe was looking into accusations the company had been giving inaccurate information to migrants about employment opportunities and making threats against them regarding their asylum status.
Mayor’s Chief of Staff Announcement
Camille Joseph Varlack, the chief of staff for Mayor Adams, released a statement confirming the intent to move away from DocGo.
“As part of our work to reduce spending, we will not be renewing the full DocGo emergency contract that currently serves approximately 3600 migrants at this time and will instead be issuing a competitive RFP to take over this work moving forward. We are working with the comptroller on a temporary extension for the upstate DocGo hotels to ensure we are not disrupting children in school and are not leaving our upstate partners without proper notice,” Varlack said.
Brad Lander Statement
New York City Comptroller Brad Lander released a statement responding to the decision to not renew the DocGo contract. Lander has been an outspoken critic of DocGo.
“My office repeatedly sounded the alarm on how ill prepared DocGo was to provide adequate services to asylum seekers. Our contract review found little basis for why DocGo was the best contractor for this job, how the dollar amount for this contract was achieved, and who they planned to subcontract out to for security, hotel, and other services,” the statement said.
Months of Warnings
In his statement, Lander asserted that his previous audit into the company’s asylum seeker services raised alarm bells that he had been warning about for months.
“After months of warnings about the selection of this vendor and its performance, I’m relieved that the Administration finally came to its senses,” Lander said.
Financial Concerns
One of the issues that Varlack brought up in their statement was the city is looking to save money. The city has been struggling to keep up with the needs of migrants as more continue to arrive.
“This will ultimately allow the city to save more money and will allow others, including non-profits and internationally-recognized resettlement providers, to apply to do this critical work, and ensures we are using city funds efficiently and effectively,” said Varlack.
DocGo Statement
A spokesperson for DocGo made a statement highlighting the temporary extension they were granted on their contract.
“The contract between the New York City Department of Housing Preservation and Development (HPD) and DocGo for housing of asylum seekers in hotels in Upstate New York has been extended through the end of 2024. This extension is designed to ensure sufficient time to transition and/or close emergency sites as needed and when directed by the City,” the DocGo spokesperson said.
Exceptional Work
In the statement, the DocGo spokesperson found the opportunity to highlight the work the company has done for the city.
“DocGo is immensely proud of the exceptional work that our team has accomplished and continues to perform in aiding the City’s response to this unprecedented crisis. At the peak of the crisis, when New York City was seeing over 600 new arrivals each day, the City’s flex housing program provided essential capacity and helped ensure families and children did not have to sleep on the street,” the statement said.
CEO Resignation
Amid the migrant care scrutiny DocGo faced from government officials, the company’s CEO Anthony Capone resigned.
In September, Capone resigned for reportedly lying about his educational record. At the time, this resignation was not enough for Mayor Adams and city officials to take them off the payroll. During this time, payments to DocGo were halted due to Comptroller Lander’s audit.
Non-Profits
Councilwoman Julie Won, the chair of the contracts committee, was happy with the decision to move on from this company, preferring to work with nonprofit organizations.
“We want to see more nonprofits because they’re the life line in human service workers,” Councilwoman Won said. “These local nonprofits are doing the casework, anyway. They deserve to get paid.”
New York’s Migrant Crisis
An influx of migrants coming from the southern border, which some have deemed a crisis, has been straining New York City’s resources.
As thousands of migrants arrived in the city, officials described the ensuing chaos as a ‘humanitarian crisis’ that filled up the city’s shelters and pressured the infrastructure of New York City schools.
