This Epstein Becker & Green, P.C. memorandum discusses an Executive Order requiring state agencies to issue regulations imposing caps on executive compensation and administrative costs on for-profit and not-for-profit service providers that receive State-authorized financial assistance or payments. New York's Governor, Andrew M. Cuomo, executed the Order on January 18, 2012, to prevent public funds from being diverted to excessive compensation and unnecessary administrative costs. The new limitations imposed by the Executive Order may adversely affect hospitals and other service providers especially Medicaid-managed healthcare plans.