Minnesota senators used the Jan. 15 Human Services Committee hearing to press DHS officials about operational issues tied to the budget: delayed 245D licensing approvals, nursing‑home capacity in rural areas, and how program‑integrity functions will move as programs split into new agencies.

Several senators described recent closures of nursing‑home or assisted‑living facilities in Greater Minnesota and asked DHS whether the state can identify available licensed beds and whether patients displaced by closures will have placement options. Elise Bailey, DHS budget director, said the department can provide licensed‑bed totals and will coordinate with the Minnesota Department of Health, but she did not provide a county‑by‑county fill‑rate during the hearing.

Senator Glenn Gruenhagen, who represents a largely rural district, asked whether DHS has a current handle on excess capacity and how the department would respond if more facilities close. "Do you have any type of handle on that?" he asked; Bailey said DHS could follow up with licensed‑bed counts and work with MDH to provide capacity data.

Lawmakers also raised persistent delays in 245D provider licensing. Multiple senators said they regularly receive constituent complaints about application processing times and cited backlogs that sources in the hearing described as as long as two‑and‑a‑half years for some applications. Committee members asked DHS to report back next week with information on the causes of the delays and a plan to reduce processing times. Bailey acknowledged the concern and said DHS would follow up with details.

The hearing also covered how program‑integrity and inspector‑general functions will change as DHS programs shift. Bailey explained that parts of the Office of Inspector General that focus on programs moving to the Department of Children, Youth, and Families (DCYF) will go with that agency, while DHS will retain background‑study and other functions related to programs remaining under DHS. Senators asked for clarity on which licensing and oversight duties will move and how coordination will be handled between agencies.

No formal actions were taken. Committee leaders asked DHS to return with the requested operational data — licensed bed counts, the status of outstanding 245D applications, and outstanding statutorily required reports — at a follow‑up meeting.