A St. Paul-based home health care company plans to close in coming months, laying off more than 400 employees.
Dependable Home Healthcare notified its staff and clients Tuesday that it will suspend services at the end of January as the company winds down its operations, according to a letter to Minnesota officials from CEO Katie Fleury. The company provides services allowing the elderly and those with disabilities to live outside institutional settings.
In an emailed statement, Fleury said shuttering the company was a “very difficult decision” made necessary by “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.”
The announcement comes just days after Gov. Tim Walz ordered the state Department of Human Services to pause payments to providers of 14 Medicaid-funded assistance programs while these programs undergo a third-party audit to look for fraud.
One of the programs affected by the payment freeze is Personal Care Assistance/Community First Services and Supports, which was among the offerings of Dependable Home Healthcare, according to its website.
State officials estimate the audit could delay payments to service providers by up to 90 days.
Among the 406 employees expected to be laid off as Dependable Home Healthcare winds down its operations, 368 are caregivers, while the rest are administrative staffers, Fleury’s letter said.
The layoffs will occur in six phases, beginning Jan. 3, 2026, and concluding March 13, 2026, according to the state Department of Employment and Economic Development.
Fleury said Dependable Home Healthcare is working to place its clients with other providers in coming months to avoid interruptions in service.
The company, located at 23 Empire Drive, has been in business since 1991.