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One NYC neighborhood has dozens of adult daycares. Now the feds have questions.

One NYC neighborhood has dozens of adult daycares. Now the feds have questions.

Summary

Many social adult daycare centers for seniors funded by Medicaid have opened quickly in a New York City neighborhood called Flushing, Queens. Federal investigators are looking into whether these centers are billing Medicaid correctly or committing fraud, as Medicaid payments for these centers in New York have risen sharply in recent years.

Key Facts

  • Social adult daycare centers provide meals, personal care, and social activities to seniors and people with disabilities.
  • Medicaid paid $3.35 billion nationwide in 2024 for adult daycare services, with 17% going to New York state’s 375 centers.
  • Spending on adult daycare in New York nearly quadrupled from 2018 to 2024.
  • Flushing, Queens, has 64 adult daycare centers in a one-mile area, the highest concentration in the U.S.
  • These centers bill Medicaid for services to over 90% of local Medicaid-eligible seniors in Flushing.
  • From 2018 to 2024, the number of seniors billed by these centers in Flushing increased by 390%, much higher than the 20% population growth.
  • New York State has referred 387 adult daycare centers for investigation since 2021, with some cases sent to the Attorney General.
  • Federal and state authorities are increasing efforts to find and stop fraud in Medicaid and other taxpayer-funded programs.
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