WHEREAS, New York State has long recognized that it has a responsibility to ensure the availability of proper health care to all its citizens, including the economically disadvantaged; and

WHEREAS, approximately one billion dollars in public funds are expended annually through the New York State Medical Assistance Program to various hospitals for the purpose of insuring that citizens eligible for such assistance are provided with necessary hospital services; and

WHEREAS, the State has a clear interest and responsibility to see that such public funds are expended properly, and not in an unauthorized, wasteful or fraudulent manner; and

WHEREAS, numerous reports have been published alleging waste, mismanagement, fraud and abuse in the use of public funds provided for the care of hospital patients; and

WHEREAS, on September 30, 1977, the Commissioner of the New York State Department of Health and the Acting Commissioner of the New York State Department of Social Services requested that you investigate and prosecute, pursuant to subdivision 3 of section 63 of the Executive Law, the alleged commission of any indictable offense or offenses in violation of the Public Health Law or the Social Services Law or in relation to any matters connected with the New York State Department of Health or the New York State Department of Social Services by hospitals subject to the provisions of the Public Health Law or Social Services Law; and

WHEREAS, the Deputy Attorney General for Nursing Homes, Health and Social Services has advised me that many of the types of waste, mismanagement, fraud and abuse which have been discovered in his investigation of nursing homes also exist in the hospital industry, and that there is a need for a civil investigation pursuant to subdivision 8 of section 63 of the Executive Law into the operation, management and funding of hospitals to provide the information necessary to ensure appropriate executive action with respect to such matters;

NOW, THEREFORE, pursuant to subdivision 8 of section 63 of the Executive Law, and in accordance with the statute and law in such case made and provided, I find it to be in the public interest that you inquire into matters concerning the public peace, public safety and public justice with respect to the operation, management and funding of hospitals, and any principal, operator, agent, supplier or other person connected therewith, and I so direct you to do so in person or by your assistant or deputies and to have the powers and duties specified in such subdivision 8 for the purpose of this requirement.