Flushing Adult Daycare Owners Bill Medicaid Millions While Donating to Kathy Hochul

Kathy Hochul’s 2022 campaign records indicate she received $55,000 in political contributions from social adult daycare centers operating in Flushing, Queens, according to investigations by regional news outlets. Nearly half of those campaign funds connect directly to two local operators, Baoli Zhang and Jiemin Shang, whose facilities have drawn scrutiny amid broader state and federal investigations into Medicaid billing practices in the area.

Medicaid Billing Growth Across Flushing Facilities

Financial disclosures show that businesses tied to Baoli Zhang have billed Medicaid over $32 million for thousands of patients since 2018, according to reporting cited by TotalNews and PaprClips. Zhang personally contributed $10,000 to Hochul’s campaign, while adding another $5,000 donation through his Bao Kang Adult Day Care center. Federal figures cited in the reports show Bao Kang’s Medicaid claims jumped from $1.5 million in 2018 to $7.22 million projected for 2024.

Similarly, Jiemin Shang runs Living Well Day Care and Finest Adult Day Care. Living Well billed Medicaid $5.8 million in 2022—the same year Shang contributed $5,000 to Hochul, alongside another $5,000 donation from Finest Adult Day Care. Federal data indicates that Living Well experienced a steep rise in claims, escalating from $114,000 in 2018 to an anticipated $8.05 million by 2024. Overall monthly revenues for social adult daycare centers in Flushing have nearly doubled compared to pre-pandemic figures.

Observations and Industry Context

Reporters visiting Living Well and Bao Kang last week observed no patients visible inside either establishment during operating hours, despite the high volume of Medicaid billings, according to the source coverage. Industry sources quoted in the reports claimed that while many centers struggled during the pandemic in 2021, local facilities rebounded sharply in subsequent years.

Out of approximately 400 social adult daycare centers across New York City, only nine contributed more than $5,000 to Hochul’s 2022 election bid. Those nine specific businesses accounted for $49 million in Medicaid billings during 2022 alone. The New York State Department of Health has referred 387 social adult daycare centers for investigation, with a significant portion forwarded for legal action regarding potential irregularities.

Nonprofit Leadership and Official Responses

Beyond his business ventures, Zhang founded the Asian American Adult Day Care Association in 2023 as an industry advocacy group, where Shang serves as executive director. Zhang is also recognized as a master of the erhu, a traditional Chinese instrument that he has performed at venues including Carnegie Hall and Lincoln Center.

Political figures have responded to the disclosures regarding Flushing’s daycare sector. U.S. Representative Grace Meng expressed a willingness for thorough investigations while acknowledging the challenges faced by the Asian American community, according to published reports. Meanwhile, State Senator John Liu noted that previous visits to various adult daycares revealed seniors actively participating in programs, even as wider regulatory scrutiny continues to examine the district’s high concentration of centers.