Adult day care settings are the most recent target in the Department of Human Services (“DHS”) recent efforts to tighten oversight and combat fraud in Minnesota. On December 16, 2025, DHS announced that it would pause issuing new licenses for adult day centers because, according to DHS, provider capacity currently exceeds the projected needs for that service. In addition, DHS states that this action will align with an Executive Order issued by Governor Walz, aimed at preventing and detecting fraud and abuse in Minnesota’s health care sectors. Adult day services include the delivery of supervision, care, assistance, training, and other activities aimed at supporting seniors and adults with disabilities to help support independent living and provide reprieve to family caretakers.

DHS states that the pause on adult day care licenses is projected to last two-years, from February 1, 2026, through January 31, 2028. During this period, DHS will stop accepting new applications for adult day center licenses and plans to cancel pending applications. In addition, DHS plans to increase its focus on current adult day center providers to ensure they are following state and federal rules. Providers currently operating adult day care centers should prepare for increased audits and oversight by ensuring records are accessible and comply with state and federal documentation requirements.

In addition, providers of healthcare services should stay tuned, as additional licensing pauses are coming to other programs in the near future. Today, DHS announced that customized living services, typically provided in licensed assisted living settings, are likely to be the next area of focus. If you have questions about your adult day center or other health provider license, or need assistance with an audit, Winthrop & Weinstine’s health law and regulatory attorneys would be happy to assist.

December 17, 2025