On July 30, 2026, during the State of New York Medicaid presentation at the United Hospital Fund's 2026 Medicaid Conference, New York Medicaid Director Amir Bassiri announced an immediate six-month moratorium on new Medicaid provider enrollments and the processing of affected changes of ownership (CHOW) applications for certain provider types designated by the Centers for Medicare & Medicaid Services (CMS) as "high risk."
New York State's Medicaid moratorium is expected to be temporary and is intended to remain in place for six months.
- Provider Types Subject to the Moratorium
The moratorium applies only to the following Medicaid provider categories:
- Laboratories
- Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS)
- Applied Behavior Analysis (ABA) providers
- Licensed Home Care Services Agencies (LHCSAs)
- Pharmacies
- Managed Long-Term Care Plans, including MLTC Partial Capitation Plans, Medicaid Advantage Plus (MAP), and Programs of All-Inclusive Care for the Elderly (PACE)
The state Department of Health (DOH) indicated that it will not process new enrollment applications or affected CHOW applications during the moratorium, regardless of the application's stage of review—effective immediately.
- Impact on Health Care Transactions
The moratorium has immediate implications for transactions involving affected provider types.
Many acquisitions and equity transactions require updates to a provider's Medicaid enrollment following a change in ownership or control. To the extent those transactions require a new Medicaid enrollment or updates that fall within the scope of the moratorium, transaction timelines may be delayed until the moratorium is lifted or additional clarity is provided by DOH.
Transaction structures that do not require a new Medicaid enrollment or modifications to existing enrollment information may not be affected. However, parties should carefully evaluate transaction structure early in the deal process to determine whether regulatory approvals associated with Medicaid enrollment could become a gating issue—until further clarity is provided.
At this stage, several important questions remain unanswered.
- Practical Considerations
Providers, investors, lenders, and other stakeholders involved in transactions affecting laboratories, DMEPOS suppliers, ABA providers, LHCSAs, pharmacies, or managed long-term care organizations should consider:
- Evaluating whether pending or proposed transactions require Medicaid enrollment updates or CHOW approvals
- Assessing whether alternative transaction structures could avoid triggering enrollment-related delays
- Revisiting transaction timelines, closing conditions, and financing milestones in light of the anticipated six-month suspension
- Monitoring forthcoming DOH guidance regarding the scope and implementation of the moratorium
- Looking Ahead
The DOH has indicated that additional information regarding the moratorium will be released in the coming days, including through a webinar. Barclay Damon will continue to monitor developments and provide updates as further guidance becomes available.
If you have questions regarding the moratorium or its potential impact on your organization or a pending transaction, please contact Brad Gallagher, co-leader of the Health Care Controversies and Pharmacy Teams, at bgallagher@barclaydamon.com, or another member of Barclay Damon's Health & Human Services Providers, Health Care Controversies, or Pharmacy Teams.