Consumer Directed Choices, Inc. v. New York State Office of Medicaid Inspector General

Garry, J. (dissenting).

We respectfully dissent. Initially, we agree that respondent properly imposed the first withholding order, based upon the communication from the Medicaid *1274Fraud Control Unit (hereinafter MFCU) that it was conducting a fraud investigation involving petitioner’s alleged “consistent! ] upcoding” of its bills. Respondent failed to act rationally thereafter, however, in granting MFCU’s second request to continue withholding payments. At that time, respondent’s information no longer consisted merely of MFCU’s assertion that it was investigating petitioner’s billing practices;…