Anoka home care provider says months-long DHS payment freeze forced closure despite law enforcement declining case

An Anoka in-home care provider says a months-long state Medicaid payment freeze forced it to close after 25 years, even though no active law enforcement investigation is underway.

Avalon Home Care owner Jonathon Hansen said he shut down the business in June after the Minnesota Department of Human Services (DHS) stopped reimbursing his company for services in April, citing a “credible allegation of fraud.” Hansen said 160 people lost jobs and 99 had their care disrupted.

“It’s taken me 25 years, you know, to build this company where it’s been now, and my company’s ruined. Like, there’s no surviving this,” Hansen said.

Hansen sued, arguing the payment hold continued for months without explanation or a criminal investigation.

“There’s no fraud happening at Avalon, and if there is, it should be referred. And if it’s being referred, why isn’t...