Walk the crowded streets of Flushing, Queens, and you’ll pass a dense stretch of social adult daycare centers that have long raised questions about Medicaid scams, and billings that often appear phantom in nature.
A recent investigation by the New York Post turned up a conspicuous connection, revealing that the owner of one of the area’s most lucrative facilities has collected tens of millions from the program while also writing checks to Governor Kathy Hochul’s campaign.
Baoli Zhang, a 69-year-old local powerbroker and accomplished erhu musician who has performed at Carnegie Hall, Lincoln Center, and Juilliard, remains at the center of the latest reporting.
Through Bao Kang Adult Day Care and related businesses, his operations have billed Medicaid at least $32 million since 2018 for services tied to tens of thousands of patients. Campaign records show Zhang personally gave Hochul $10,000 in 2022, with another $5,000 coming from Bao Kang itself.
While Zhang listed himself as the owner and manager of Bao Kang on campaign finance disclosures, local and federal Medicaid data list other individuals as the owners, a pattern that also appears with Empire Adult Day Care, another facility he has claimed.
Local politicians have long treated the centers as ready-made voting blocs. “If you get 100 people in there and you make them vote, it’s very powerful for a primary. Every politician goes to these daycares for help,” one industry source told the New York Post.
Hochul’s office claims the governor has rooted out waste and fraud, saving billions, reforming Medicaid, and prosecuting wrongdoers, adding that contributions do not influence decisions.
Rep. Grace Meng (D) welcomed good-faith investigations while rejecting what she described as political targeting of Asian American seniors. State Sen. John Liu (D) called Zhang a longtime respected community leader and said any suspected fraud should be fully investigated.
Zhang is not alone. Jiemin Shang runs Livingwell Day Care, which donated $5,000 to Hochul the same year it billed Medicaid $5.8 million, plus another $5,000 from Finest Adult Day Care, which he also operates.
Together, these two men account for nearly half of the roughly $55,000 that Flushing social adult daycares channeled to Hochul’s 2022 campaign.
Nine such centers overall gave more than $5,000 each that year, including American Adult Daycare, Big Apple Adult Daycare, and Greater New York Social and Health, and those same nine billed Medicaid a combined $49 million in 2022 alone.
When reporters stopped by the flagship locations last month, the picture looked quiet. Livingwell, which federal data link to about $27 million in billings from 2018 to 2024 for more than 26,500 unique patients, stood empty, with staff quickly asking the visitors to leave.
Bao Kang told a similar story: a worker said the place typically handles 100 to 200 people a day, yet the rooms appeared vacant and the $32 million figure drew only a shrug. Neither Zhang nor Shang has been accused of any wrongdoing, and both declined to comment.
A source familiar with the industry said, “In 2021, [social adult daycare centers] were dying due to COVID. Someone threw them a lifeline and must have said something like, ‘Take care of me, I’ll take care of you.’ They’re making more money than ever now.”
The money trail shows sharp growth after the pandemic. Livingwell’s Medicaid claims jumped from just $114,000 in 2018 to more than $8 million by 2024. Bao Kang climbed from $1.5 million to $7.22 million over the same stretch.
Across Flushing’s dense concentration of these centers; dozens packed into a one-mile radius that collectively bill more than $100 million a year, according to reporting and a July CBS News data analysis, monthly revenue has nearly doubled from pre-COVID levels.
Zhang’s reach extends further. He also owns Confucius Social Daycare in Manhattan’s Chinatown, which billed another $15.7 million over the six-year period, plus related management companies including Silver Arch Management and AA Plus Management Inc., the latter of which billed roughly $2.65 million as a point-of-service Medicaid provider.
That same building on Baxter Street in Chinatown that Zhang lists as a business address also houses Cathay Adult Daycare, which donated $5,000 to Hochul in 2022 while billing $8.4 million that year; Zhang is not listed as its owner and any connection remains unclear.
He founded the Asian American Adult Daycare Association in 2023, with Shang serving as secretary-general, and has given to other Democrats as well, including $7,800 to Rep. Grace Meng and nearly $5,000 to State Sen. John Liu.
In a 2022 Chinese-language report following earlier Flushing fraud cases, Zhang praised New York’s system, saying the state “is one of the states with the best welfare in the United States” while warning that “excessive consumption will only deprive their descendants of resources.”
Flushing has become one of the most prominent focal points for questions about New York’s social adult daycare program. Statewide, the centers have drawn 387 referrals for investigation since 2021, roughly one-third of which were elevated to the Attorney General.
Those referrals sit alongside earlier federal cases, including the February charges against two Flushing men in an alleged $120 million kickback scheme covered by Gothamist, and findings from State Comptroller Thomas DiNapoli’s February audit of questionable payments and capacity violations. Recent reporting has most fully connected the billing patterns, empty facilities, and political donations.
These centers are meant to offer socialization for frail seniors who need more support than regular senior centers, along with structured activities, and meals.
But, the combination of empty rooms on ordinary weekdays, sky-high billings, and steady political donations has left many wondering how tightly the system is being watched, and where the hardearned taxpayer money is really going.
As of now, no charges have been filed against Zhang, Shang, or any of the centers named in connection with the donations and high Medicaid billings, leaving the larger questions about oversight and accountability unresolved.











