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A home care company in St. Paul says it’s shutting down and laying off about 400 employees.
In a notice to the state’s Department of Employment and Economic Development, Dependable Home Healthcare said layoffs will include more than 360 personal care assistants and support staff.
The company’s staff work with people with disabilities in their homes and communities. Dependable Home Healthcare notified staff and clients Tuesday.
In a statement, company CEO Katie Fleury said several factors led to the shutdown. She cited increased operating costs, struggles to recruit staff, and regulatory changes such as reductions in allowable service hours and lower rates for overnight care.
“Dependable is actively supporting its clients and employees through this transition,” Fleury said. “We are working with each individual client and their family to locate continuing care without interruption with other providers.”
Fleury said the company also plans to help employees find new work.
Home care staff are in high demand right now; Minnesota’s Department of Human Services has said the industry is in the midst of a workforce shortage crisis.
The closure also follows Gov. Tim Walz’s announcement of a third-party audit of several of the state’s Medicare waiver programs. The audit is meant to curb fraudulent claims — but could pause payments in the programs under review for up to 90 days. Dependable Home Healthcare provides some services that are subject to the current audit, according to the company website, though the company did not cite this as a reason for closing.
Dependable Home Healthcare says its client services will end in late January.
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