Cuomo threatens $1 million fine against medical companies that break COVID-19 vaccination distribution restrictions

(The Center Square) – With one health care provider already under investigation, accused of administering the COVID-19 vaccine to non-priority individuals, New York Gov. Andrew Cuomo on Monday issued a stern warning – and the threat of a $1 million fine – to any health care operator that breaks the law when it comes to distributing the highly sought after medicine.

Cuomo told reporters that he would sign an executive order that levies a fine of up to $1 million against any provider that commits fraud with the vaccine. In addition, doctors, nurses, pharmacists or any other licensed professional would have their licensed revoked, which the governor stated may be more of a deterrent.

The announcement came after CBS2 in New York City reported that ParCare Community Health was under a criminal investigation after state Health Commissioner Dr. Howard Zucker said the company may have “fraudulently obtained” doses of the vaccine, sent them to other parts of the state and offered them to the public.

As of Monday afternoon, the company’s Facebook page still featured a post dated Dec. 16 that states vaccines would be available on a “first come first serve” basis, but only for the elderly or people with underlying conditions or in other high-risk categories.

New York state officials have directed providers to administer the first doses of the vaccine to nursing home residents and staff as well as health care workers in high-risk positions. Following them would be other long-term care staff, emergency medical service and other health care workers. After those groups receive the vaccine, the state will then direct it to essential workers and the public, beginning with populations considered at the highest risk.

While Cuomo never mentioned ParCare during his remarks, he did say that a company was under investigation and that it likely won’t be the only one.

“The vaccine is a valuable commodity,” he said. “And you have many people who want the vaccine, and you’ll have fraud in the vaccine process. It’s almost an inevitable function of human nature and of the marketplace.”

In a statement posted early Sunday morning on its Facebook page, ParCare said it was striving to provide the vaccine to those permitted to receive it under state guidelines.

“ParCare Community Health Network has a long history of partnering with the City of New York to provide vital health care services to New Yorkers who need them most – including providing COVID-19 testing – especially for New Yorkers in medically underserved communities who’ve been hardest hit by COVID-19,” the statement read.

It also said it was cooperating with state officials.

However, Zucker at Monday’s briefing said ParCare received the vaccine because it filled out a form stating incorrectly that it was a qualified health center.

“So that’s strike one,” Zucker said. “And number two, they moved it from one area (of the state) to another area which was inappropriate. So that’s strike two. And then they gave it to people who were not on the priority list, and so that was strike three.”

In addition to its New York City locations, ParCare also has a facility in Orange County.

Secretary to the governor Melissa DeRosa said in addition to facing the fine and license revocation, company officials or providers who falsify business records to get the vaccine for fraudulent purposes could face a year in prison.