Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz personally delivered warning letters to two senior care facilities in Flushing, Queens, citing suspicious Medicaid billing practices during a coordinated federal crackdown. The visits to Kent Senior Care and Evergreen Adult Day Care were part of a broader operation in which CMS officials conducted more than 80 visits and issued warnings to providers across New York City on Tuesday.
At Kent Senior Care, Oz questioned the facility's director about billing records that appeared to reflect full attendance despite low visible occupancy. The director, who stated the facility's maximum capacity was 70 persons, explained that additional seniors typically arrived later in the morning. Oz noted that billing records suggested seniors attended five days a week, while the director acknowledged many participated only two or three days. The administrator also challenged the facility for billing specialized wheelchair transportation services, stating he observed no wheelchairs in use. The director attributed this to staff potentially copying data from previous files rather than updating billing codes accurately.
Oz further scrutinized recreational activities funded by Medicaid, questioning whether taxpayer dollars should cover games like mahjong. While the director argued the activity aids cognitive function and socialization, Oz countered that federal funds should prioritize medical treatments such as cancer therapies or heart surgery. During the exchange, Oz observed seniors entering without signing attendance sheets, a practice the director insisted was required for all participants.
At the second location, Evergreen Adult Day Care, Oz confronted a floor manager over significant discrepancies between reported attendance and actual headcount. The manager estimated approximately 200 seniors attended on Mondays, Wednesdays and Fridays, and about 150 on Tuesdays and Thursdays. Oz observed significantly fewer individuals in the facility at the time of his visit, estimating around 25 people present. The manager suggested some seniors had left for appointments or shopping, but Oz stated the numbers did not align with the billing levels.
The administrator also examined attendance books at Evergreen Adult Day Care, noting entries dated October 22 and October 23, dates that had not yet occurred during the visit. While Fox News Digital could not determine if these were advance schedules or completed records, Oz alleged that organized criminal networks were exploiting these programs by paying seniors to attend in exchange for fraudulent billing. He claimed individuals connected to what he described as the "Chinese mafia" were paying participants between $1,000 and $1,200 to facilitate these schemes.
Oz stated that federal authorities identified annual spending on these programs approaching $1 billion and alleged that proceeds from fraudulent billing were financing other criminal activities, including money laundering and human trafficking. Although Fox News Digital did not independently verify these connections to the two specific facilities, Oz described the alleged scheme as a "clubhouse for crime." New York Gov. Kathy Hochul confirmed that state health officials joined federal and local law enforcement in the targeted effort to combat fraud within social adult day care programs.