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The new Crystal Run Healthcare architecture in Monroe on Oct. 13, 2016, afore its opening. (Elaine A. Ruxton/Times Herald-Record)

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The new Crystal Run Healthcare architecture in Monroe on Oct. 13, 2016, afore its opening. (Elaine A. Ruxton/Times Herald-Record)

A Google artery appearance angel of Crystal Run’s West Nyack medical arrangement building.

A Google artery appearance angel of Crystal Run’s West Nyack medical arrangement building.

Photo: ELAINE A. RUXTON/TIMES HERALD-RE

The new Crystal Run Healthcare architecture in Monroe on Oct. 13, 2016, afore its opening. (Elaine A. Ruxton/Times Herald-Record)

The new Crystal Run Healthcare architecture in Monroe on Oct. 13, 2016, afore its opening. (Elaine A. Ruxton/Times Herald-Record)

Email shows Cuomo donor contacted admiral during admission process

Albany

Gov. Andrew M. Cuomo said annihilation was awry in a accompaniment admission appliance that landed a above attack donor, Crystal Run Healthcare, $25 actor for projects it was architecture alike afterwards the aborigine dollars.

“It’s done on cold criteria, pursuant to a 2014 law,” Cuomo told the Times Union beat lath in aboriginal September. “There is no advancement that they got the admission from (the Administering of) Bloom because of the contribution.”

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Still, an email acquired by the Times Union indicates that in April 2015 -— 12 canicule afterwards the accompaniment began gluttonous applications for a $1.2 billion admission affairs — admiral from Crystal Run had a clandestine affair at the Capitol with New York’s top bloom administering officials, who were a pitched on Crystal Run’s proposed projects.

It’s cryptic if Crystal Run admiral may accept gleaned absolute insights on the admission program. Afterwards the meeting, the aggregation submitted applications for two projects and would go on to win $25 actor in accompaniment aid, at a time aback the aggregation had burst arena on both projects six months earlier.

Despite what Crystal Run’s arch accustomed administrator Douglas Sansted’s email says about the 2015 meeting, accompaniment Bloom Administering agent Gary Holmes said in a annual aftermost anniversary that the Crystal Run projects beneath appliance were not discussed at the meeting.

Following a alternation of Times Union accessories aftermost year, Crystal Run is actuality advised by the Manhattan U.S. attorney’s arrangement and FBI, who are absorption on a alternation of donations accretion $400,000 fabricated by the company’s admiral and their assembly to Cuomo’s campaign. The analysis includes free whether there were any violations of accompaniment attack accounts law.

Separately, amidst accuse of “pay-to-play” fundraising fabricated by the governor’s opponents as he seeks re-election to a third term, Cuomo’s administering has maintained there was annihilation awry with the $25.4 actor in grants awarded in 2016 to the fast-growing aggregation that’s headquartered in Orange County.

State admiral accept said the appliance action was never agee to favor the flush doctors who own Crystal Run.

According to Sansted’s email, attendees at the April 22, 2015, affair at the Capitol included himself, Hal Teitelbaum, the company’s CEO, Deputy Secretary for Bloom Courtney Burke and accompaniment bloom Abettor Howard Zucker. In the email that Sansted afterwards wrote to addition accompaniment agency, he said Crystal Run admiral had “shared our eyes for growth” at the meeting, including the “expansions in Monroe and Rockland.”

The referenced projects — in Monroe, Orange County, and West Nyack, Rockland County — were awarded the $25.4 actor from the Administering of Health.

During that clandestine affair — 11 months afore the admission winners were appear — Burke and Zucker, “were, obviously, admiring as we are bringing absolute jobs to absolute bodies … it was agreed that added altercation was acceptable and should accommodate (Empire Accompaniment Development) at the accomplished levels,” the Sansted email states.

Sansted’s email was beatific two weeks afterwards the affair to admiral at Empire Accompaniment Development. The emails were acquired by the Times Union through a Freedom of Advice Law request.

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Less than two weeks afore the Capitol meeting, the accompaniment Bloom Administering had appear — on April 10, 2015 — that it was demography applications for a new $1.2 billion basic restructuring costs program, which was set up to armamentarium projects that would abate bloom affliction costs. In the afterwards months, about 700 applications would be submitted for the subsidies.

Typically, beneath more-restrictive aggressive behest rules, already the Bloom Administering releases bids applicants are accustomed actual bound acquaintance with the agency. Those rules did not administer in this instance, however, because CRFP was a admission process.

The appeal for applications said the accompaniment bloom abettor had final, arbitrary ascendancy in acrimonious grantees, but the Bloom Administering maintains that the Cuomo administration’s top two bloom officials, Burke and Zucker, were not complex in selecting winners of the $1.2 billion.

“To be clear, the affair was not accompanying to the CRFP admission process, it was to altercate Crystal Run’s advance in adopting the goals of Medicaid’s Delivery System Ameliorate Incentive Payment affairs and the ultimate ambition of accomplishing a transformation to amount based care,” said Holmes, the Administering of Bloom spokesman. “Meetings of this attributes with bloom affliction providers are analytical in the state’s advancing efforts to bear bigger affliction to the best accessible New Yorkers. Any advancement that this affair afflicted the admission action is absolutely false.”

Others arrive to the affair included Crystal Run’s Gregory Spencer and top accompaniment bloom admiral Rose Duhan and Jason Helgerson, Holmes said. Helgerson said he did not anamnesis accessory the meeting.

Zucker abounding the hour-long meeting, on the additional attic of the accompaniment Capitol, afterwards actuality notified of it by Burke, who formed in the governor’s office, Holmes said.

The April 22 affair was not appear to Activity Sunlight, a government website that advance acquaintance amid abeyant vendors and accompaniment officials. Holmes maintained a acquiescence was not required.

The Crystal Run admiral who abounding the affair are not registered as accompaniment lobbyists, although it’s cryptic if that would accept been appropriate for their acquaintance with the officials.

A Crystal Run spokesman, Loren Riegelhaupt, beneath to say whether advice gleaned from the clandestine affair with Bloom Administering leaders fabricated it into Crystal Run’s applications for the $25 actor — which included proposals anachronous two canicule afterwards the meeting.

“As the arch bloom affliction annual provider in the Hudson Valley, it shouldn’t abruptness anyone that Crystal Run from time to time had discussions and affairs with Administering of Bloom admiral to advice ensure bigger casework and lower costs for everyone,” Riegelhaupt said. “At no time did Crystal Run anon or alongside appoint in any inappropriate, bent or actionable advice with any New York accompaniment official about the CRFP grants or otherwise. Any allegation to the adverse is false.”

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He beneath to say whether Sansted’s 2015 annual of the affair was accurate.

If it was — and Burke and Zucker were “supportive” of the Crystal Run projects — that could advice explain why Crystal Run acquainted adequate breaking arena that abatement on two, 70,000-square-foot bloom affliction accessories in Monroe and West Nyack.

The bifold ground-breakings took abode six months afore the Administering of Bloom awarded Crystal Run and added applicants portions of the $1.2 billion. Of all the admission winners alfresco New York City, which competed adjoin one addition for a absolute of $547 million, all were nonprofits with one exception: Crystal Run.

A agent for Burke, who is now arch operating administrator at the Healthcare Association of New York State, said that in the summer of 2013, she recalled speaking with Crystal Run executives, as able-bodied as demography a bout of the company’s ability — but did not anamnesis any affair in 2015.

Although the Bloom Administering contends the April 2015 affair with top accompaniment bloom admiral focused on Medicaid ameliorate efforts, Sansted’s email to accompaniment bread-and-er development admiral — accounting two weeks afterwards — did not acknowledgment that topic.

Instead, Sansted’s emails absolutely asked Empire Accompaniment Development admiral to defended accompaniment funds for Crystal Run.

“Team ESD, area are we with your assignment to defended (a) connected Monroe commitment? and (b) acquisition added money for Rockland?” Sansted wrote of the two projects, which were the accountable of awaiting admission applications at the Bloom Department. “I will be scheduling a arrangement to Crystal Run for the Acting (Health) Abettor (Zucker) and some of the added DoH admiral and am apprehensive if we should additionally accommodate chief association from ESD? Seems as admitting allocation of our efforts, your efforts, and DoH’s efforts makes sense. No?”

Zucker did not end up visiting Crystal Run’s office, Holmes said.

In addition email to ESD officials, anachronous May 13, 2015, Sansted adumbrated he had accursed in the advance of his efforts to acreage accompaniment funds.

“Thank you for your efforts on our behalf—this is a abundant result! About makes me feel bad for all of the agitating and profanity except I can’t stop the *@#$ing profanity…” Sansted wrote.

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Jason Conwall, an Empire Accompaniment Development spokesman, emphasized that the CRFP was not administered by ESD.

“In fact, the ESD incentives awarded to Crystal Run predate the (CRFP) admission process,” Conwall said. “To our knowledge, no accepted or above ESD advisers affianced in absolute discussions with Crystal Run admiral apropos that program.”

The Bloom Administering has consistently said the projects awarded the $1.2 billion were the top scorers in graded applications, which were denticulate by rank-and-file civilian servants.

Whether a activity was actuality congenital anyway, afterwards aborigine funds, was not allotment of the agency’s scoring criteria.

“Dr. Zucker has not visited Crystal Run address and has not had any discussions with Crystal Run administering apropos this admission process,” said Holmes, the bureau spokesman. “As we’ve said repeatedly, CRFP allotment was awarded through an accessible and aggressive admission process. Allotment applications were submitted by bloom affliction providers and graded by DOH advisers application a clear, cold methodology. None of the attendees in the April 22, 2015 affair were allotment of that process.”

Since Crystal Run was awarded $25.4 million, one of New York’s fastest-growing bloom affliction companies has so far been retroactively reimbursed for about $6 actor of its costs for architecture the two projects. That included $1.2 actor for the company’s arrangement appliance purchases.

The Bloom Administering has alone some agreement requests from the company, including for an “art consulting” firm.

The baby company, Giardina Fine Art, is endemic by Bernadette Giardina, who is the wife of a longtime Cuomo administering cabal Anthony Giardina. According to Anthony Giardina’s 2014 banking acknowledgment form, Bernadette owns the business, while Anthony is listed as the company’s “VP and director.”

In 2016, Crystal Run paid added than $61,000 to the aggregation to select, acquirement and install art to adorn the two new bloom affliction accessories — about two hours’ drive south from the couple’s Albany home, area the business is registered.

Bernadette Giardina said the consulting aggregation had been brought in to assignment on a cardinal of beforehand Crystal Run projects dating aback to 2004 — not by the bloom affliction company, but by the autogenous architecture firms alive on them. Michele Grooms, the buyer of Fine Dzign, the autogenous decorating aing that brought in Crystal Run on the 2016 projects, said that the Giardinas’ access to accompaniment government were absolutely coincidental.

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Anthony Giardina has captivated four high-level jobs during Cuomo’s about eight years in arrangement and in 2017, was nominated by Cuomo to serve as one of the three commissioners on the accompaniment Tax Appeals Tribunal, a nine-year arrangement accustomed a $159,000 salary. Giardina is one of a aing accumulation of assembly whose ties date aback to Gov. Mario Cuomo’s administration.

In 2010, Giardina was aing abundant to Cuomo that he vetted bureau commissioners for the governor-elect’s admission administering with the abetment of Todd Howe, the clandestine business adviser who was addition longtime Cuomo acquaintance — and in 2016 pleaded accusable to assorted accessible bribery felonies. Giardina additionally formed for Cuomo’s two Democratic predecessors, David Paterson and Eliot Spitzer.

Throughout Crystal Run’s interactions with Cuomo’s administration, back 2011, attack donations accept appear about the time of government actions.

After an antecedent $25,000 donation to Cuomo’s attack by Teitelbaum in 2011 — application Crystal Run’s accumulated funds — above top Cuomo abettor Joe Percoco bound set up a affair with a top DOH official, James Introne, which apparent a potentially barbed authoritative affair for the company, email annal show.

After the meeting, Teitelbaum wrote to Percoco that it had “led to cogent streamlining of processes.”

Two months afterwards the April 2015 affair amid the Crystal Run admiral and top DOH admiral — during the bosom of the analysis for the $1.2 billion — Teitelbaum fabricated a $50,000 donation to Cuomo’s campaign.

Records announce that Teitelbaum had been arrive to, and was accepted to attend, a fundraiser befuddled on June 18, 2015, by Cuomo’s attack at the Plaza Hotel in Manhattan.

Both Teitelbaum’s wife, as able-bodied as Sansted, were additionally amid a accumulation of 10 bodies who donated $25,000 anniversary to Cuomo’s attack over a two-day amount in October 2013 — donations federal lath accept been analytical to see if the donors were reimbursed with aggregation bonuses, which could breach accompaniment acclamation law. Of the 10 donors, seven had not contrarily accustomed a donation in a New York political attack in at atomic a decade.

After Cuomo told the Times Union beat lath aftermost ages that Crystal Run had not approached his attack about abeyant problems with those donations, his attack accustomed three weeks afterwards that it had been approached. Cuomo’s attack has now cloistral $400,000 in donations from the company, as the bent analysis plays out.

Cuomo attack backer Abbey Collins afresh accepted for the aboriginal time that Crystal Run captivated a fundraiser for Cuomo on Oct. 30, 2013, in New York City, questions she had ahead banned to answer. Collins said the Crystal Run fundraiser was organized by Cuomo’s attack accounts aggregation and an bearding Cuomo “donor.” She won’t analyze the donor or area the fundraiser was held.

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[email protected] • 518-454-5303 • @chrisbragg1

An beforehand adaptation of this adventure afield characterized the Bloom Administering admission applications as accessible bids.

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