Lawmakers aim to close opioid settlement fund loophole
Beat Memo
A linguistic loophole could put an estimated $250 million opioid settlement payout in jeopardy due to New York for addiction treatment, prevention and recovery programs, POLITICO Pro's Maya Kaufman reports.
The settlement proceeds were secured earlier this year in part by State Attorney General Letitia James, who worked on a multistate case against members of the Sackler family and their company Purdue Pharma, which developed the opioid painkiller OxyContin.
The state's legal definition of opioid settlements is limited to manufacturers, distributors, dispensers, consultants, chain pharmacies and related entities.
That means settlement money from the Sacklers themselves would bypass the state's dedicated opioid settlement fund — which, by law, can only be spent on addiction-related programming — and instead end up in the general fund, where there are no strings attached.
Legislation that would close the loophole passed the Senate earlier this month and is now awaiting a floor vote in the Assembly as session winds to a close.
'New Yorkers deserve full accountability in how opioid settlement funds are used. (This bill) ensures those funds go directly toward what they were meant for: expanding prevention, treatment, and recovery services in communities hardest hit by the opioid epidemic,' Assembly sponsor Michaelle Solages said in a statement. 'We owe it to the families and communities who continue to carry the weight of this crisis.'
The measure is expected to pass the Assembly before the end of session Tuesday. After that, it would require Gov. Kathy Hochul's signature.
'The opioid crisis has devastated communities across the country, and many families are still suffering from immense pain and loss,' James said in a statement. 'This legislation ensures that the $3 billion in settlements secured by my office for New York, including the settlement against the Sackler family, is reinvested in communities to help them heal.'
IN OTHER NEWS:
— SUNY Downstate Medical Center's former chair of emergency medicine pleaded guilty to a grand larceny charge Friday for stealing approximately $1.4 million from the public hospital between 2016 and 2023, the Brooklyn district attorney's office said..
Physician Michael Lucchesi was found to have used his business credit card to spend hundreds of thousands of dollars on personal travel, a New Jersey pet hotel, New York Sports Club membership and tuition payments for his children, among other expenses. SUNY discovered the thefts during an audit, according to the Brooklyn DA's office.
Lucchesi agreed to make restitution of $656,074 to Downstate's clinical practice when he is sentenced in August, the Brooklyn DA's office said.
ON THE AGENDA:
— Monday at 10 a.m. The NYC Health + Hospitals board of directors' audit committee meets, followed by the strategic planning committee.
— Tuesday, 9:30 a.m. to 11 a.m. The New York City Community Services Board's mental health subcommittee meets.
— Tuesday at 10 a.m. The state Public Health and Health Planning Council's public health committee will meet.
— Wednesday at 10 a.m. The state Public Health and Health Planning Council will meet.
GOT TIPS? Send story ideas and feedback to Maya Kaufman at mkaufman@politico.com and Katelyn Cordero at kcordero@politico.com.
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What you may have missed
— Albany Medical Center was fined $375,000 last week for failing to correct violations of the state's clinical staffing law, marking the Department of Health's first settlement to date over hospital understaffing, POLITICO Pro's Katelyn Cordero and Maya Kaufman report.
The settlement stemmed from a July 2024 state probe that found hundreds of violations within Albany Medical Center's clinical staffing plans, according to the New York State Nurses Association, which represents nurses there and submitted numerous complaints of understaffing.
Over the next several months, the private hospital failed to submit an adequate plan of correction to resolve the staffing violations, the Health Department concluded.
ODDS AND ENDS
NOW WE KNOW — Less than half of physicians were in private practice last year, per the American Medical Association.
TODAY'S TIP — These are the healthiest types of seafood.
STUDY THIS — Walking for more than 100 minutes daily was associated with a lower risk of chronic low back pain, according to a study published Friday.
WHAT WE'RE READING
— In fight over research overhead funding, universities propose alternatives to Trump's cuts. (STAT)
— How Kennedy's purge of advisers could disrupt U.S. vaccinations. (New York Times)
Around POLITICO
— Kennedy's promises on vaccines are being put to the test, Lauren Gardner and Sophie Gardner report.
— Children's Hospital Los Angeles to shut gender clinic, Rachel Bluth reports
MISSED A ROUNDUP? Get caught up on the New York Health Care Newsletter.
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