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Home»Business
Business

New York City to terminate contract with troubled medical company responsible for sheltering migrants

April 10, 2024No Comments4 Mins Read
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New York City is moving to end its contract with a medical services company, DocGo, that was hired to house and care for a recent influx of international migrants. The decision comes after scrutiny over the firm’s costly deal with the city and questions about the quality of its humanitarian services. DocGo was awarded a $432 million emergency contract last year to help the city manage the large population of migrants, but concerns were raised about the lack of detail justifying the cost and the company’s expertise in providing services to thousands of migrants. Allegations of mistreatment of migrants under the company’s care, including issues with health care and food waste, were also reported. The company’s CEO resigned after admitting to lying about his educational record.

Currently, DocGo provides care for 3,600 migrants in New York, with officials stating that the company will continue to provide services for migrants who were relocated upstate until a new vendor is selected. The city aims to have a new contractor in place by the end of the year and will temporarily use an existing contract with Garner Environmental Services to care for migrants in the meantime. The decision to end the contract with DocGo is seen as a move to save money and open up opportunities for other organizations, including non-profits and internationally-recognized resettlement providers, to apply for the critical work of caring for migrants in the city.

Despite ending its contract for housing and care of migrants, the city has other ongoing contracts with DocGo and will continue to work with the company on those deals. In a statement, a spokesperson for DocGo expressed pride in the work the company has done to aid the city’s response to the influx of migrants. New York has faced challenges in handling the large number of international migrants arriving in the city since 2022, with over 187,000 individuals seeking shelter. The decision not to renew the contract with DocGo was first reported by Politico, with city officials emphasizing the need to use funds efficiently and effectively in providing services to the migrant population.

Mayor Eric Adams’ office announced the city’s decision to not renew the contract with DocGo before it expires on May 5, and to search for a new housing provider for migrants. The move follows concerns raised by city Comptroller Brad Lander regarding the lack of detail justifying the cost of the contract and the company’s expertise in handling the care of thousands of migrants. Reports of alleged mistreatment of migrants under DocGo’s care, along with the resignation of the company’s CEO due to lying about his educational record, further fueled scrutiny of the company’s operations. The city aims to transition to a new contractor by the end of the year, allowing for more organizations to apply for the vital work of housing and caring for migrants in New York City.

The decision to end the contract with DocGo and seek a new housing provider is part of an effort to streamline operations, save money, and allow for a more diverse pool of organizations, including non-profits and internationally-recognized resettlement providers, to participate in caring for migrants in the city. By temporarily using an existing contract with Garner Environmental Services, the city aims to ensure a smooth transition of care for migrants while a new contractor is selected. Despite the decision to end the contract for housing and care of migrants, the city will continue to work with DocGo on other ongoing contracts. This move comes as New York City grapples with the challenge of managing the large number of international migrants who have arrived in the city seeking shelter since 2022, highlighting the importance of efficient and effective use of resources in providing humanitarian services.

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