Adult day care centers are good business. Just ask state Assemblyman Eric Stevenson, who was arrested earlier this month after allegedly accepting bribes that would benefit two new centers in his South Bronx district.
Or just take a look around. An analysis of business data from ReferenceUSA, which relies on weekly updated business filings from the New York Department of State, shows that more than 200 social adult day care centers have been established or sought to open in New York City, with Manhattan, Brooklyn and Queens each home to nearly 40 centers.
Approximately one-third of the adult day care centers have opened within the last two years.
The map below shows their locations, as reported to the state:
All of the companies have reported to the federal government that they are operators of adult care centers.
In a just a five-block radius in Bensonhurst, Brooklyn, three adult day care centers have cropped up within the last two years — competing for Medicaid-eligible seniors in a growing East Asian neighborhood. Posters out front hawk services like massages, transportation, ping-pong tables, and complimentary haircuts. Unlike medical adult day care centers, social day care centers do not provide medical care.
A radio broadcast last week by WNYC looked at the rise of social adult day care centers in the city — a largely unregulated industry that has experienced sharp growth following a change in state law that allows centers to be reimbursed by private insurance companies. The New York Times followed today with an interview of New York Medicaid director Jason Helgerson, who said of reports that able-bodied seniors were using the centers, “The idea that they’re playing Ping-Pong — I guess they could be wheelchair-bound Ping-Pong players, but otherwise it’s fraud and they are not eligible.”
Medical adult day care centers are overseen by the State Department of Health and typically require licenses, inspections and licensed healthcare professionals to be eligible for reimbursement by Medicaid. Social day care centers on the other hand, require no licensing and aren’t regulated by any specific agency.
Stevenson’s proposed bill would have halted the future construction or opening of other new adult day care centers for three years — giving an unfair competitive edge to the two centers he is alleged with helping facilitate with construction.