Seventy-seven social adult day care centers operating within a one-mile radius of Flushing, Queens, billed Medicaid more than $733 million from 2018 through 2024, according to a New York Post analysis of federal data.
The facilities collectively generated more than $100 million in annual billing, representing approximately 14% of New York’s spending on social adult day care services.
When Post reporters visited several of the largest billers, they encountered locked doors, covered windows, restricted entrances or rooms that appeared empty during business hours. Some employees declined to provide access or answer questions.
None of the facilities highlighted in the investigation has been charged with fraud, and the billing totals alone do not establish criminal conduct.
Dozens of Centers Operate Within One Mile
Inside New York’s medical fraud capital where often empty senior centers bill Medicaid $100M-a-year for patients https://t.co/8MGWpM3DU4 pic.twitter.com/17WCuTAakr
— New York Post (@nypost) August 3, 2026
Livingwell Day Care billed Medicaid approximately $27 million from 2018 through 2024, with more than 26,500 patients attributed to the center in the federal data reviewed by the Post.
During the newspaper’s visit, reporters described dim lighting and rows of empty tables near the entrance. They did not see seniors inside, and a worker declined to answer questions.
Bao Kang Adult Day Care was associated with approximately $32 million in billing and 43,900 patients during the same period. A worker said the center generally served between 100 and 200 people each day, but a security monitor visible from the front desk reportedly showed empty common areas at the time of the visit.
Other facilities with large reported totals included: Merry Adult Day Care, with approximately $25 million in billing, Greater New York Social and Health, with approximately $28 million, Evergreen Adult Day Care, with approximately $32 million, and Sunrise Senior Service, with approximately $45 million. The Post reported encountering locked or restricted entrances at some of those locations.
Eligibility Depends on Documented Needs, Not Appearance
Social adult day care programs provide structured activities, supervision, meals and other support intended to help people with functional limitations remain in their communities. They are not the same as ordinary senior centers, which can generally provide recreational activities and meals based primarily on age or residency.
New York Department of Health policy says a managed long-term care plan should not enroll someone in social adult day care unless the person has a functional or clinical need for covered community-based long-term care services.
That need must be documented through an assessment, included in the person’s care plan and reevaluated over time. The plan must also identify why social adult day care is appropriate for that individual.
State Auditors Identified $285 Million in Questionable Payments
A 2026 audit by the New York State Comptroller’s Office concluded that the Department of Health did not adequately oversee the managed long-term care plans responsible for monitoring social adult day care providers. Managed long-term care plans reported approximately $2.4 billion in social adult day care payments from January 2019 through October 2024.
Auditors identified more than $285 million in questionable encounter payments involving service dates after providers had been terminated from at least one of the six managed care networks examined. Approximately $28.6 million involved providers that had been terminated for reasons connected to fraud, waste, abuse, integrity or quality concerns.
The Comptroller’s Office recommended that the Department of Health review the payments, determine whether money should be recovered and improve its procedures for tracking provider terminations and monitoring managed care plans.
Separate Cases Show How Adult Day Care Billing Has Been Exploited
In February 2026, federal prosecutors charged Flushing residents Inwoo Kim and Daniel Lee in an alleged $120 million Medicare and Medicaid scheme involving a pharmacy and two social adult day care centers. According to the Justice Department, the defendants allegedly paid Medicaid recipients cash and supermarket gift certificates to enroll in the centers or obtain prescriptions from the pharmacy.
Prosecutors alleged that Medicare and Medicaid paid approximately $120 million for prescription drugs and adult day care services that were medically unnecessary, were not provided or were connected to illegal kickbacks. Claims allegedly exceeded the centers’ permitted capacity at times.
Kim and Lee were charged with conspiracy to commit health care fraud. The allegations remain pending, and both defendants are presumed innocent unless proven guilty.
In a separate case, Brooklyn operator Eric Zhu surrendered to federal authorities on July 20 to begin a 57-month prison sentence for leading a Medicaid fraud and kickback scheme through Prime Life Adult Day Care. Court records showed that Prime Life billed Medicaid approximately $3.2 million for services recipients never received after paying them cash to enroll. Zhu was also ordered to pay nearly $3.2 million in restitution and forfeit $1.5 million in fraud proceeds.