Several adult day care centers, primarily operating in Flushing, Queens, and linked to a prominent local figure, donated $55,000 to New York Governor Kathy Hochul's 2022 campaign. In the same year, these centers collectively billed Medicaid for approximately $49.3 million, according to an investigation by The Post. One individual, Baoli Zhang, has been identified as a key operator of these facilities and a significant donor.
Zhang's businesses, including Bao Kang Adult Day Care and Confucius Social Daycare Center, have claimed at least $32 million from Medicaid since 2018. Financial disclosures show Zhang personally donated $10,000 to Hochul's campaign, with his Bao Kang Adult Day Care contributing an additional $5,000 in 2022. Another center, Livingwell Day Care, run by Jiemin Shang, who is also associated with Zhang and the Asian American Adult Daycare Association (AAADA), donated $5,000 to Hochul in 2022 while billing $5.8 million to Medicaid that year.
Finest Adult Day Care, also reportedly run by Shang, contributed another $5,000 to Hochul in 2022. In total, nine social adult day care centers (SADCs) and one individual operator primarily based in Flushing contributed $55,000 to Hochul's campaign. These same nine businesses billed Medicaid for nearly $250 million over a six-year period, with their 2022 Medicaid billing reaching $49 million.
Business Growth and Operational Concerns
Business has surged for facilities like Livingwell and Bao Kang. Livingwell's Medicaid billing increased from $114,000 in 2018 to $8.05 million in 2024. Bao Kang's billing rose from $1.5 million in 2018 to $7.22 million by 2024. Industry sources suggest that SADCs have experienced significant revenue growth, particularly in the post-COVID-19 era, with some facilities doubling their pre-pandemic monthly revenue.
During visits by The Post, some of these centers appeared vacant. Livingwell Day Care was observed to be empty, and staff quickly asked reporters to leave. Bao Kang Adult Day Care was also found to be vacant during a visit. Despite this, Livingwell reportedly billed Medicaid $27 million between 2018 and 2024 for tens of thousands of unique patients.
Zhang, described as a master performer of the erhu with a history of performing at venues like Carnegie Hall and Lincoln Center, is also the founder of the AAADA. Shang serves as the secretary-general of this advocacy group. While Zhang is identified as an owner on campaign finance disclosures, federal and local Medicaid data sometimes list other individuals as the official owners.
Political Connections and Investigations
A spokesperson for Governor Hochul stated that political contributions do not influence government decisions and highlighted the administration's efforts to combat waste, fraud, and abuse within the Medicaid program. "Any facility caught breaking the law will be held accountable," the spokesperson added.
U.S. Representative Grace Meng, who received $7,800 in donations from Zhang, commented that her office welcomes good faith investigations. State Senator John Liu, representing Flushing, described Zhang as a "long-time and respected leader in the community" and expressed pride in his decades of support. Liu also stated that if fraud is suspected, full investigations and prosecutions should be undertaken.
New York State's Department of Health has referred a significant number of SADCs for investigation. Since 2021, 387 SADCs have been referred, with one-third of those cases subsequently sent to the Attorney General for legal action. Previous reporting and federal raids have indicated that SADCs have been sites of Medicaid fraud, with claims for services not rendered and instances of kickbacks.
Zhang, in a translated statement from a 2022 Chinese-language news report, cautioned against greed within the community and emphasized the generosity of New York's welfare system. He advised recipients to cherish benefits and environments, warning that excessive consumption could deplete resources for future generations. Organizations like Cathay Adult Daycare, housed in the same Manhattan building as some of Zhang's listed business addresses, also donated to Hochul's campaign, billing millions to Medicaid in the same year.
Other Flushing-based SADCs, including American Adult Daycare Center, Big Apple Adult Daycare, and Blue Sky Adult Daycare, along with Brooklyn's Jy Adult Social Daycare, each contributed $5,000 to Hochul's campaign in 2022.