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St. Paul Home Care Provider to Close in Early 2026, Laying Off 406 Workers

The company cites new state scrutiny of Medicaid home-care claims that could delay reimbursements up to 90 days.

Overview

  • The wind-down begins in January 2026, with client care ending Jan. 30 and caregiver employment concluding Feb. 6.
  • Of the 406 layoffs, 368 involve direct-contact roles such as personal care assistants, support workers, and program assistants.
  • Thirty-eight administrative positions are scheduled for layoffs on dates between Jan. 3 and March 13, 2026.
  • CEO Katie Fleury told the Minnesota Department of Employment and Economic Development the decision follows upcoming regulatory changes affecting the industry.
  • Minnesota DHS recently hired Optum to review Medicaid-based claims, and officials warned legitimate payments could face delays of up to 90 days.