Page posted: 2/1/16

Page reviewed: 1/22/21

Page updated: 2/27/26

Legal authority

Federally approved BI, CAC, CADI and DD waiver plans, 42 C.F.R. 441.301(c)(4)(5), 42 C.F.R. 441.710(a)(1)(2), Minn. Stat. §245A.01, Minn. Stat. §245D.01, Minn. Stat. §252.28, Minn. Stat. §252.41, subd. 3(2), Minn. Stat. §252.43 (1), Minn. Stat. §302A.001, Minn. R. 9525.0036, Minn. Stat. §254B.01

Definitions

Day services: A group of services for people with disabilities that includes:

Facility-based day services: Services and supports provided in buildings or centers owned, leased or controlled by prospective or currently licensed and enrolled day service providers.

Community-based day services: Services and supports provided at locations in the general public or community settings (e.g., community centers, libraries). These locations are not in buildings or centers owned, leased or controlled by prospective or currently licensed and enrolled day service providers.

Overview

DHS uses the day services needs determination process to manage growth, expansion, service changes, reductions and closures of day services. This effort is guided by:

Lead agencies must offer HCBS options that meet people’s needs and provide opportunities for them to make informed choices about community services and supports that are alternatives to day services. Many people with disabilities want competitive community employment and greater participation in community life.

DHS encourages lead agencies and day services providers to collaborate to complete the day services needs determination process.

Lead agency responsibilities

During the temporary licensing moratorium effective Feb. 1, 2026, lead agencies must work with DHS to discuss and identify service and support options for new day services facilities.

Initial step

If the lead agency proposes to develop or expand new day services, it first must alert DHS of the proposed changes by requesting an exception to the licensing moratorium. For more information, refer to the moratorium exception process on DHS – Licensing help for adult day providers.

Due to the temporary 245D licensing moratorium, the lead agency must submit an exception request and receive approval before submitting a determination of need application. For additional information, refer to DHS – Frequently asked questions: Temporary HCBS moratorium exceptions.

Examples of expanded services

Examples of expanded services are when the lead agency seeks to:

Determination of need process

Required application

The lead agency must submit an application when it proposes to:

The lead agency must consult with the DSD Response Center to identify the applicable determination of need application. Then, the lead agency uses the instructions on the applicable form to submit the application to DHS:

Change in ownership

The lead agency or day services provider must notify DHS in writing (via both the DSD Response Center and the MHCP Provider Resource Center) no later than 30 days before the transaction completion or effective date when a day services provider changes ownership or its provider name.

Note: The lead agency/day services provider does not need to submit an application in this situation.

Authorization

The lead agency’s application must receive lead agency board approval or approval from a designated authority before final DHS authorization. Then, the lead agency may change its day services.

Data sources

When the lead agency submits a determination of need application, the information in the application must include any applicable supporting data from:

DHS actions

DHS will review and make decisions on needs determination applications in accordance with applicable statutes and rules. When an application is incomplete, DHS may request more information.

DHS may waive any part of an application that asks the lead agency to provide information DHS already has on file.

DHS will notify the lead agency if it approves or denies a complete application within 30 calendar days of receiving it. If DHS approves an application, it may include conditions of approval. If DHS denies an application, the day services provider cannot receive DHS licensure or reimbursement from federal or state funds.

Appeals process

Lead agency boards, lead agency staff and/or day services providers may appeal DHS’ decision, according to Minn. Stat. Ch. 14. Day services providers may also appeal lead agency board decisions, according to Minn. Stat. Ch. 14.

If a lead agency or day services provider appeals, DHS must receive notice within 30 calendar days of the lead agency and day services provider receiving DHS’ decision.

How to file an appeal

To initiate the appeal, the lead agency or day services provider must submit a letter to the DHS commissioner (c/o Disability Services Division). Next, the lead agency or day services provider will receive notification from the Minnesota Office of Administrative Hearings. The notification will indicate the date, time and place for the appeal hearing.

For more information about appeals hearings, refer to Minnesota Office of Administrative Hearings – Self help.