In 2022, Governor Kathy Hochul of New York accepted $55,000 in campaign donations from several adult day care centers in Flushing, Queens. According to reporting by The Post, these nine specific businesses have collectively billed Medicaid for nearly $250 million over a six-year period.
The $250 million Medicaid windfall in Flushing
The scale of Medicaid spending in the Flushing neighborhood of Queens has reached staggering proportions. As reported by The Post, nine adult day care centers in the area accounted for $49 million in Medicaid billings in 2022 alone. This is part of a much larger trend where these specific centers have claimed nearly $250 million over the last six years.
The financial trajectory of these specific daycare businesses shows explosive growth. For instance, Livingwell Day Care, operated by Jiemin Shang, saw its Medicaid billings jump from $114,000 in 2018 to $8.05 million in 2024. Similarly, Bao Kang Adult Day Care, owned by Baoli Zhang, increased its claims from $1.5 million in 2018 to $7.22 million by 2024. This surge reflects a broader pattern in Flushing, where monthly revenue for daycares has nearly doubled compared to pre-pandemic levels.
Baoli Zhang’s dual life as an erhu virtuoso and daycare owner
Baoli Zhang is a figure of significant cultural standing in the community. A world-renowned musician, Zhang has performed at prestigious venues like Carnegie Hall and Lincoln Center .. A former child prodigy from Beijing, Zhang's career was built on the erhu, a traditional Chinese two-stringed instrument, with his early success involving solo recordings sold across Asia and the United States.
Baoli Zhang has increasingly focused his attention on the lucrative social adult day care sector in New York. Alongside his business partner Jiemin Shang,Zhang has funneled significant political support to Governor Kathy Hochul. The report notes that Zhang personally donated $10,000 to Hochul’s campaign in 2022, with an additional $5,000 coming through his Bao Kang Adult Day Care. Shang’s business, Livingwell Day Care, also contributed $5,000 to the Governor's campaign during that same year.
Ownership discrepancies in the Bao Kang Medicaid filings
A significant point of confusion remains regarding the official oversight of these high-revenue businesses. While campaign finance disclosure records list Baoli Zhang as the owner and manager of Bao Kang, federal Medicaid data presents a different picture. According to the investigation, Medicaid records list other individuals as the actual owners of the facility, leaving the true management structure of the business opaque.
The management structure of Zhang’s broader business portfolio remains unclear. This includes the Confucius Social Daycare Center in Manhattan’s Chinatown and AA Plus Management Inc., the latter of which has billed taxpayers $2.65 million. While these entities are part of a massive Medicaid-billing network, it is important to note that neither Zhang nor Shang has been accused of any wrongdoing by state or federal authorities.
Grace Meng’s defense of the Flushing daycare community
The scrutiny of these daycare centers has become a flashpoint for political tension in New York. US Representative Grace Meng, who received $7,800 from Baoli Zhang, has pushed back against the investigation. Meng told The Post that her office welcomes "good faith investigations" while rejecting what she characterized as "MAGA campaigns targeting Asian American senior citizens."
The density of social adult day care centers in Flushing has reached a critical mass.. Within a single mile radius in the neighborhood, 77 centers are reportedly billing Medicaid for over $100 million annually. This concentration of high-value Medicaid proviers has led to questions about whether the Flushing area has become a primary focal point for Medicaid-related scrutiny in the state.
Comments 0