Governor Kathy Hochul’s campaign received $55,000 from social adult daycare centers in Flushing, the New York City neighborhood where Nick Shirley investigated alleged fraud. This month, the New York Post reviewed donation records, visited the two largest donors, and found both centers empty of patients during business hours. Nick had found the same situation there about a month earlier.
There are nearly 400 of these centers in New York City, but only nine donated more than $5,000 to Hochul’s first campaign for governor in 2022. Those nine centers billed Medicaid about $49 million that year. In July, Nick’s investigation described Flushing as a place where billing no longer matched the population it was meant to serve. The Post’s donor list comes from this same small group of operators.
Nearly half of the donations came from two men. Baoli Zhang, gave $10,000 himself and another $5,000 through his business, Bao Kang Adult Day Care, according to financial records reviewed by the Post. Since 2018, Zhang’s businesses have claimed at least $32 million from Medicaid for tens of thousands of listed patients. He also owns Confucius Social Daycare Center in Manhattan’s Chinatown, which billed $15.7 million during the same time.
The other major donor is Jiemin Shang, who runs Livingwell Day Care. Livingwell gave Hochul $5,000 in 2022 and billed Medicaid $5.8 million that year. Another $5,000 donation came from Finest Adult Day Care, which Shang also manages. Livingwell’s Medicaid billing grew from $114,000 in 2018 to $8.05 million by 2024. Bao Kang’s billing rose from $1.5 million to $7.22 million in the same period. Overall, monthly daycare revenue in Flushing has almost doubled since before the pandemic.
At Bao Kang, a worker told Post reporters the center serves between one hundred and two hundred people each day, but then checked a security monitor and saw the common areas were empty. In July, a staff member at another Flushing center told Nick on camera that the thousands of names on its records were not actually present in the building. None of the centers mentioned in the Post’s report have been charged with a crime.
An industry source told the Post that these centers were struggling during COVID until someone helped them out, describing the situation as “Take care of me, I’ll take care of you.” This is just one anonymous person’s opinion about why the donations began, not a proven fact. There is no public evidence that Hochul or her campaign gave anything in return. Political donations from business owners are legal. The Post’s reporting shows that the centers donating to the governor are the same ones billing Medicaid at levels their facilities cannot explain.
Federal prosecutors have been investigating this type of spending throughout the summer. On August 4, the Justice Department’s Fraud Division charged 19 people in Medicaid home care schemes and expanded its Northeast Health Care Fraud Strike Force. The department links this work to the fraud task force led by Vice President JD Vance. CMS Administrator Dr. Mehmet Oz, who visited Flushing with Nick in July, said in the announcement that the agency is creating safeguards to spot criminal activity before any money is paid out.
