St. Paul home care company to shut down in early 2026, lay off more than 400

St. Paul-based Dependable Home Health Care announced Tuesday it will wind down operations beginning in January, laying off 406 people in the process.

The company was founded in 1991 and provides in-home caregiver services to people with disabilities. Of those being laid off, 368 are in direct contact with clients as direct support professionals, personal care assistants, support workers and program assistants.

In a letter to the Minnesota Department of Employment and Economic Development (DEED), Dependable Home Health Care CEO Katie Fleury cited “upcoming regulatory changes impacting the Minnesota home care industry” for the closure.

“The decision was made in response to several factors, including increasing operational costs, difficulty recruiting and retaining staff in a highly competitive labor market, and recent legislative changes in the regulatory environment such as reductions in allowable service hours and lower rates for overnight care,” Fleury said in a statement to 5 EYEWITNESS NEWS. “All of these factors placed significant constraints on our ability to provide services that best meet the needs of our clients and continue operating sustainably.”

The closure is scheduled to happen in phases, with the last day for client care coming on Jan. 30. The last day of employment for those 368 caregivers will fall on Feb. 6. Another 38 administrative staff members will be laid off on various dates between Jan. 3 and March 13.

Fleury added that Dependable Home Health Care is working to transition its clients to other providers and helping employees search for new jobs. She did not say whether workers would receive severance pay.

Dependable Home Healthcare’s announcement comes less than a week after the Minnesota Department of Human Services began contracting with data analytics company Optum to review all claims submitted through more than a dozen Medicaid-based benefits before payments go out.

RELATED: Amid fraud scrutiny, Walz orders audit of DHS Medicaid billing, pause on payments

Minnesota officials cautioned that the audit could result in payments for legitimate services being delayed up to 90 days.

Dependable Home Health Care’s business model centers around the Personal Care Assistance/Community First Services and Supports services, which were among the 14 “high-risk” programs identified by DHS as vulnerable to fraud and abuse. Fleury did not cite the audit as a contributing factor to Dependable Home Health Care’s closure.

“It is concerning that Dependable Home Healthcare cites ‘upcoming regulatory changes’ as reasons for its decision to shut down and lay off more than 400 employees,” a DHS spokesperson said in a statement. “The governor’s recently announced executive order and the enhanced administrative oversight of home and community based services by DHS are necessary to protect taxpayer dollars and ensure services are legitimately provided to those who need them.”
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