Dependable Home Health Care, a provider of in-home support for individuals with disabilities in St. Paul, Minnesota is proving that it’s not so dependable after all.
The company recently announced that it is winding down operations in January 2026, which will result in 406 employees losing their jobs, according to a report by KSTP TV.
Founded in 1991, the company has provided personal and community-based care across Minnesota for more than three decades. Of the workers affected, 368 serve clients directly as personal care assistants, direct support professionals, program assistants and similar roles.
According to a notice filed with the Minnesota Department of Employment and Economic Development, Dependable Home Health Care cited upcoming regulatory changes within the state’s home care industry as a major factor behind its decision to close.
In a statement, CEO Katie Fleury explained that the business had been facing growing financial pressures, including rising operational costs, challenges in hiring and retaining staff, and legislative changes that have reduced reimbursement rates and limited billable service hours. Together, she said, these issues made it increasingly difficult to continue operating while maintaining the level of care clients required.
The company plans to close in stages, with client care scheduled to end by Jan. 30 and the last day of employment for most caregivers on Feb. 6. Administrative layoffs will follow through mid-March. Dependable Home Health Care said it is assisting clients in finding new service providers and helping displaced workers seek new positions, though the company has not disclosed whether employees will receive severance packages.
The announcement comes amid a period of increased scrutiny and regulatory change within Minnesota’s home care sector. The Department of Human Services recently began working with Optum, a data analytics firm, to review Medicaid-based claims before payment in an effort to curb fraud and abuse. This review process could delay payments for legitimate services by up to 90 days.
Dependable Home Health Care’s business model has relied heavily on Personal Care Assistance and Community First Services and Supports programs—two of several Medicaid-based services that DHS identified as being particularly vulnerable to misuse. While the company did not link its closure directly to the new audit process, the timing underscores the growing strain facing providers in the state’s home care network.
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