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Flushing Daycare Donations to Hochul Linked to Sharp Rise in Medicaid Billing

Federal oversight and prosecutions have intensified after reporting found empty centers and linked roughly $55,000 in 2022 donations to operators with rapid billing growth

Overview

  • Friday coverage tied about $55,000 in donations to Governor Kathy Hochul’s 2022 campaign to a small group of social adult daycare operators in Flushing, Queens.
  • Public records show dramatic Medicaid billing increases for some named centers between 2018 and 2024, including Livingwell rising from about $114,000 to roughly $8 million and Bao Kang rising from about $1.5 million to roughly $7.2 million.
  • Reporters who visited flagship centers in July and in recent visits found common areas largely empty during business hours, and none of the specific centers named in the recent stories have been charged with a crime.
  • Federal action has intensified: the Justice Department charged 19 people in related Medicaid schemes on August 4 and the Centers for Medicare & Medicaid Services announced new safeguards after an on-site review by its administrator.
  • Campaign donations are legal and Hochul’s office says contributions did not influence policy, but local ties to operators, post‑COVID financial relief and the reports could prompt tighter oversight and further investigations that affect how services are delivered to elderly clients.