New York Governor Kathy Hochul's 2022 gubernatorial campaign received $55,000 in contributions from social adult daycare centers (SADCs) in Flushing, Queens, according to campaign finance records reviewed by the New York Post. Nearly half of those donations are linked to two men — Baoli Zhang and Jiemin Shang — who own several of Flushing's largest daycare businesses.
New York Governor Hochul received $55,000 from Flushing adult daycare operators under scrutiny for Medicaid billing
New York Governor Kathy Hochul's 2022 gubernatorial campaign received $55,000 in contributions from social adult daycare centers (SADCs) in Flushing, Queens, according to campaign finance records reviewed by the New York Post. Nearly half of those donations are linked to two men — Baoli Zhang and Jiemin Shang — who own several of Flushing's largest daycare businesses.
Zhang, 69, personally donated $10,000 to Hochul's campaign and contributed an additional $5,000 through his Bao Kang Adult Day Care, financial disclosures show. Zhang's businesses have claimed at least $32 million from Medicaid since 2018 on behalf of tens of thousands of patients, according to the report.
Shang runs Livingwell Day Care, which donated $5,000 to Hochul in 2022, the same year it billed $5.8 million to Medicaid. An additional $5,000 came from Finest Adult Day Care, which Shang also runs. Federal billing figures show Livingwell's Medicaid claims rose from $114,000 in 2018 to $8.05 million in 2024. Bao Kang's claims rose from $1.5 million in 2018 to $7.22 million by 2024.
Only nine of New York City's nearly 400 SADCs made contributions over $5,000 to Hochul's first gubernatorial campaign in 2022. Those nine businesses collectively billed Medicaid $49 million that same year, according to the Post's investigation. Monthly revenue for daycares across Flushing overall has nearly doubled compared to pre-pandemic figures.
The Post reported that it visited Livingwell and found it empty of patients, despite the facility billing Medicaid $27 million from 2018 to 2024 for 26,500 unique patients. Bao Kang was also reported to be empty of patients during a visit.
Zhang is listed as founder of the Asian American Adult Daycare Association (AAADA), a nonprofit advocacy group formed in 2023, with Shang serving as secretary-general. Zhang also owns Confucius Social Daycare Center in Manhattan's Chinatown, which billed Medicaid $15.7 million between 2018 and 2024, as well as Silver Arch Management and AA Plus Management Inc., the latter of which has billed $2.65 million in Medicaid claims, according to federal data.
Zhang's ownership of several facilities is described as opaque in the report. While he listed himself as owner and manager of Bao Kang on campaign finance disclosures, local and federal Medicaid data list other individuals as owners of that facility and of Empire Adult Day Care.
Cathay Adult Daycare, housed in the same Manhattan Chinatown building Zhang lists as a business address, donated $5,000 to Hochul in 2022 and billed Medicaid $8.4 million that year. Zhang is not listed as the owner of Cathay Adult Daycare, and the Post notes it is unclear whether he is connected to it.
Other daycare centers that donated $5,000 each to Hochul's 2022 campaign include American Adult Daycare Center, Big Apple Adult Daycare, Blue Sky Adult Daycare, Greater New York Social and Health Adult Daycare — all in Flushing — and Brooklyn's Jy Adult Social Daycare.
Zhang donated $7,800 to US Representative Grace Meng and $4,950 to State Senator John Liu, according to campaign disclosures. A 2022 event at Zhang's Empire Adult Day Care was attended by both Meng and Liu.
Zhang grew up in Beijing and is also described in Chinese-language media as a world-renowned musician and master of the erhu, a two-stringed instrument, having performed at Carnegie Hall, Lincoln Center, and the Juilliard School. He entered a prestigious Beijing music conservatory at age nine.
The New York State Department of Health told CBS News it has referred 387 SADCs for investigation since 2021, a third of which were subsequently referred to the state Attorney General for legal action. The Post's prior reporting and federal raids have identified SADCs as locations for alleged Medicaid fraud, including billing for patients not being treated and issuing kickbacks from federal funds received.
At a 2022 community event, Zhang was reported to have cautioned against greed and 'excessive consumption' in remarks translated from Chinese. Neither Zhang nor Shang responded to the Post's multiple requests for comment, according to the report. Neither has been accused of wrongdoing, nor have the SADCs mentioned in the story.
- Zhang and Shang did not respond to the Post's requests for comment; their direct responses to the specific allegations about billing practices and facility occupancy are absent.
- The source text does not establish whether any of the named SADCs or individuals are under active investigation.
- The discrepancy between the names listed as owners on Medicaid documents and Zhang's self-identification as owner on campaign finance forms is noted but not resolved.
- The basis on which the 26,500 unique patient figure for Livingwell was calculated is not explained.
- The source text does not describe the methodology used to determine that facility visits showed empty premises, including time of day or advance notice.
- No response from Jiemin Shang or any of the other named daycare operators is included beyond Zhang's translated 2022 remarks.
Read the original at New York Post