ALBANY – In the latest application of a pair of Court of Appeals holdings that altered the law of governmental immunity for ministerial and discretionary acts, an appellate panel in Albany has held that a Medicaid provider has no private right of action to recover consequential damages—such as lost profits—even in the face of government negligence.
The Appellate Division, Third Department, yesterday held that allowing Medicaid providers to bring a private right of action to recover lost profits and other consequential damages would “contravene the key cost containment” purpose of a statute designed to control the taxpayer costs.
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