The two-year licensing pause for adult day centers will free resources to focus on oversight of existing licensed providers. The pause is li
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NEWS RELEASE
*Dec. 16, 2025*
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Scott Peterson
651-392-7223
[email protected]
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Licensing pause extended to adult day care settings
Minnesota will soon extend a licensing pause to adult day care settings, where provider capacity exceeds current and projected needs for the service.
The announcement from the Minnesota Department of Human Services is the latest in a series of measures the agency has taken to tighten oversight and prevent and stop fraud. The action aligns with Governor Walz’s Executive Order 25-10 [ [link removed] ] detailing steps to continue to combat fraud.
The two-year licensing pause for adult day centers will free resources to focus on oversight of existing licensed providers. The pause is likely to last from Feb. 1, 2026, through Jan. 31, 2028.
“The current licensed capacity of adult day providers goes well beyond the actual need for these services,” said temporary Human Services Commissioner Shireen Gandhi. “This action is necessary to safeguard the integrity of these programs for the people who need them.”
Licensed adult day centers [ [link removed] ] provide services such as health support, social activities and meals. Trained staff help supervise activities and keep participants safe. The services reduce isolation for participants, help people care for themselves and give caregivers a short break.
During the pause, the state will stop accepting new applications for adult day center licenses and cancel pending applications. Licensing efforts will focus on visiting existing providers to ensure they are following state and federal rules.
To ensure people across Minnesota can access the services they need, the department will work with counties, Tribal Nations and managed care organizations on exceptions for new licenses.
Since May 2025, the Department of Human Services has taken these actions to prevent and stop fraud:
* Moved 11 additional Medicaid benefits into a high-risk classification, enabling tighter oversight with pre-enrollment site visits, unannounced site visits, criminal background checks and fingerprinting of those with an ownership stake.
* Disenrolled approximately 800 inactive providers in high-risk programs, freeing resources to focus on active providers.
* Brought on a third-party vendor to audit fee-for-service billing for 14 high-risk services, using advanced analytics to identify risks before making payments.
* Terminated Housing Stabilization Services due to widespread fraud.
* Paused licenses for new Home and Community-Based Services providers for two years, freeing capacity to provide monitoring and oversight of existing providers.
* Launched a new public website [ [link removed] ] to provide details and regular updates on program integrity work.
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