In recent years, there has been a significant increase in adult day care centers in the Flushing neighborhood of Queens, raising federal concerns. A report by Columbia Broadcasting System (CBS) on July 1 revealed that Flushing has become the most densely populated area for adult day care centers in the United States, with 64 centers within a one-mile radius. The Centers for Medicare & Medicaid Services (CMS) confirmed that they are investigating the rapid expansion of adult day care centers in New York State and the billing practices related to Medicaid to determine if there is any Medicaid fraud involved.
CBS’s analysis of Medicaid data found that in 2024, Medicaid payments for adult day care services in the United States reached $3.35 billion, with New York State accounting for 17%, approximately $570 million, the highest expenditure among all states. Of particular note is that New York State’s expenditure nearly quadrupled from 2018 to 2024, a growth rate much higher than that of other states.
Flushing is at the center of this surge in spending. Statistics show that within a one-mile radius of Flushing, there are a total of 64 adult day care centers, making it the most densely populated cluster in the country. The number of individuals served by these centers under the Medicaid program accounts for over 90% of the eligible elderly population in the area, a remarkably high proportion that has drawn the attention of federal investigators.
Furthermore, there is a significant disparity between the growth of the elderly population in Flushing and the number of individuals receiving services. From 2018 to 2024, the eligible elderly population in Flushing increased by only about 20%, similar to the national average. However, the number of elderly individuals receiving services under the Medicaid program at local adult day care centers skyrocketed by 390%, almost a five-fold increase, far exceeding the population growth rate.
At the core of the federal investigation lies the question of whether these centers are truly servicing a large influx of seniors or if they are submitting fraudulent claims to the federal Medicaid centers through inflated or false reporting.
Dr. Mehmet Oz, Director of the Centers for Medicare & Medicaid Services, stated in an interview with CBS, “It makes one wonder, how many adult day care centers are truly needed?” This statement indicates that federal regulatory agencies have raised suspicions about the rapid expansion of the industry in Flushing and throughout New York State.
Currently, the federal government has initiated investigations into certain adult day care centers in New York State, with potential future federal enforcement actions expected, although the specific institutions involved have not been disclosed.
In response to the criticisms, the New York State Department of Health (DOH) stated that in recent years, the state government has been actively combating Medicaid abuse, including establishing new tracking systems, enhancing supervision, and conducting compliance reviews. Since 2021, the DOH has referred 387 adult day care centers for investigation, with approximately one-third of the cases being further forwarded to the State Attorney General’s Office for enforcement actions.
A spokesperson for the DOH mentioned that the Governor and the Department of Health have taken strong measures in recent years to uphold the quality of care, control Medicaid expenditures, and root out systemic abuse.
In recent years, the federal government has intensified efforts to crackdown on fraudulent activities in government healthcare assistance programs. Cases such as hospice fraud in California, childcare assistance fraud in Minnesota, and welfare misuse in Mississippi highlight the federal government’s focus on combating fraud in healthcare and social welfare assistance programs.