Minnesota - Skilled Nursing Services — Licensing, Medicaid Enrollment and Startup Requirements
Last reviewed: 2026-09-10
The Minnesota Department of Health (MDH) Health Regulation Division requires agencies delivering RN and LPN services in the home to hold a Comprehensive Home Care License under Minnesota Statutes, Chapter 144A before billing Medical Assistance. Minnesota covers these services under the Medical Assistance (MA) State Plan as Home Care Nursing (HCN) and across its HCBS waivers, including the Elderly Waiver (EW), Brain Injury (BI), Community Alternative Care (CAC), and Community Access for Disability Inclusion (CADI) waivers.
Applicants must clear the Minnesota Department of Human Services (DHS) temporary moratorium on enrolling high-risk service providers, which extends through January 27, 2027, and secure access to the Minnesota Provider Screening and Enrollment (MPSE) portal. Providers must first operate under a temporary Comprehensive Home Care License and pass an initial full survey by MDH before receiving a permanent license and maintaining active Medicaid billing status.
1. Service Definition and Scope
In Minnesota, Skilled Nursing Services delivered in the home are formally categorized as Home Care Nursing (HCN) under the state plan and extended skilled nursing under the HCBS waivers. These services require a physician's order and involve complex, continuous, or intermittent care that can only be safely performed by a licensed nurse.
The scope of a Comprehensive Home Care License allows the agency to provide both basic support services and delegated nursing tasks, medication administration, and complex skilled treatments directly to clients in their residences.
- Service Name: Home Care Nursing (HCN) and Waiver Skilled Nursing
- Provider Type: Comprehensive Home Care Provider
- RN Duties: Comprehensive assessments, care planning, medication management, and complex treatments
- LPN Duties: Delivering delegated nursing tasks and treatments under the supervision of an RN
- Physician Orders: Required for all skilled nursing interventions and medication administration
- Setting: Delivered directly in the client's home or primary residence
2. Regulatory and Oversight Agencies
The Minnesota Department of Health (MDH) handles the licensure and physical surveying of home care agencies. The Minnesota Department of Human Services (DHS) manages Medicaid provider enrollment, waiver administration, and claims processing.
Providers must interact with both departments continuously, maintaining their MDH license in good standing to prevent DHS from terminating their Medicaid enrollment.
- Licensing Agency: Minnesota Department of Health (MDH) Health Regulation Division (https://www.health.state.mn.us/facilities/regulation/homecare/index.html)
- Medicaid Agency: Minnesota Department of Human Services (DHS) (https://mn.gov/dhs)
- Enrollment Portal: Minnesota Provider Screening and Enrollment (MPSE) (https://mn.gov/dhs/partners-and-providers/policies-procedures/minnesota-health-care-programs/provider-enrollment/mpse/)
- Claims System: MN-ITS (https://mn-its.dhs.state.mn.us/)
3. Gatekeeping Prerequisites: Who Can Even Apply
Minnesota imposes strict structural prerequisites before an agency can bill for skilled nursing services. The state currently enforces a temporary moratorium on enrolling high-risk service providers, which blocks new applications in specific categories through January 27, 2027, unless an exception is granted.
Additionally, an agency cannot enroll in Medicaid for these services without first securing a Comprehensive Home Care License from MDH. Basic Home Care licenses are insufficient for skilled nursing and medication administration.
- Enrollment Moratorium: DHS temporary moratorium on high-risk service providers effective through January 27, 2027
- Licensure Prerequisite: Must hold an active Comprehensive Home Care License from MDH
- Service Delivery Mandate: Must deliver at least one qualifying home care service directly to a client for a fee during each 12-month license period to maintain licensure
- Exclusion Period: Owners and managerial officials of previously revoked agencies are barred from applying for five years under MN Stat. 144A.471
- Location Requirement: Must maintain a physical business location in Minnesota or an approved border state
4. Licensure and Certification Requirements
Agencies must apply for a Comprehensive Home Care License through the MDH Health Regulation Division. The process begins with a temporary license, during which the provider must begin serving clients and implementing their policies.
Within the first year of operating under the temporary license, MDH conducts an initial full survey. If the agency is found in substantial compliance, MDH issues the permanent Comprehensive Home Care License.
- Application Form: MDH Comprehensive Home Care License Application
- Required Document: Statement of Services detailing the exact skilled nursing services to be provided
- Temporary Phase: Initial license is temporary; permanent license requires passing an on-site survey
- Integrated License Option: Providers may add a Home and Community-Based Services (HCBS) 245D designation to their license
- Medicare Certification: Optional, but requires passing the initial full survey and holding a comprehensive license first
5. Medicaid Provider Enrollment
Once licensed by MDH, the agency must enroll with Minnesota Health Care Programs (MHCP) via the Minnesota Provider Screening and Enrollment (MPSE) portal. Home Care Nursing is considered a high-risk category, requiring fingerprint-based background checks and an application fee.
Providers must also register for MN-ITS, the state's electronic billing and clearinghouse system, to verify eligibility and submit claims.
- Enrollment System: Minnesota Provider Screening and Enrollment (MPSE) portal
- Application Fee: Required for institutional providers, matching the federal Medicare application fee rate
- Risk Category: High risk, requiring fingerprinting and site visits
- Surety Bond: Required for certain home care and DME providers upon enrollment
- Revalidation: Required every five years through the MPSE portal
6. Staffing, Training and Background Checks
All staff with direct client contact must clear a background study through the DHS NETStudy 2.0 system before providing services. Nursing staff must hold active, unencumbered licenses from the Minnesota Board of Nursing.
The comprehensive home care provider must establish a system to communicate up-to-date information to the RN regarding staff competency for delegation purposes.
- Background Checks: Mandatory processing through DHS NETStudy 2.0
- RN Qualifications: Active Registered Nurse license in Minnesota
- LPN Qualifications: Active Licensed Practical Nurse license in Minnesota, working under RN supervision
- Orientation: Staff must complete orientation on the home care bill of rights and aging/disability needs
- Tuberculosis Screening: Required for all direct care staff per MDH guidelines
7. Documentation, Policies and Records
MDH requires comprehensive home care providers to maintain agency-specific policies and procedures that address all requirements of Minnesota Statutes, Chapter 144A. Client records must be kept current and secure.
Every client receiving skilled nursing must have a detailed service plan, current physician orders, and accurate medication administration records (MARs).
- Service Plan: Must be developed by an RN and updated regularly based on client assessments
- Physician Orders: Must be signed, dated, and renewed according to state and waiver rules
- Medication Records: Strict documentation required for all administered and delegated medications
- Policy Manual: Must include emergency preparedness, infection control, and client rights policies
- Record Retention: Client records must be retained for a minimum of five years after discharge
8. Billing, Rates and Claims
Claims for Home Care Nursing and waiver skilled nursing are submitted electronically through MN-ITS. Services are typically billed in 15-minute increments using standard HCPCS codes.
Rates are established by the DHS Disability Services Division and are published in the MHCP Provider Manual. Providers must verify member eligibility and waiver status prior to billing.
- Billing System: MN-ITS electronic clearinghouse
- HCPCS Codes: T1002 (RN services) and T1003 (LPN services)
- Billing Units: Typically billed in 15-minute increments
- Prior Authorization: Required for extended Home Care Nursing and specific waiver services
- Rate Publication: DHS publishes current rate frameworks in the MHCP Provider Manual
9. Approval Sequence and Timeline
The approval process is sequential and can take several months. The agency must first prepare its policies and apply to MDH for a temporary Comprehensive Home Care License.
After receiving the temporary license, the agency applies to DHS via the MPSE portal. Once enrolled, the agency begins serving clients and awaits the MDH initial full survey to secure the permanent license.
- Step 1: Submit Comprehensive Home Care License application and policies to MDH
- Step 2: Receive temporary license from MDH (typically 60-90 days)
- Step 3: Submit MHCP enrollment application via MPSE portal
- Step 4: Begin providing services to clients under the temporary license
- Step 5: Pass MDH initial full survey within the first year to receive permanent license
10. Common Denials and Survey Findings
MDH frequently denies permanent licensure if an agency fails to provide at least one qualifying home care service to a client for a fee during the temporary license period. Paper-only agencies are not permitted.
Survey deficiencies often stem from inadequate documentation of RN delegation, missing physician orders, or failure to complete NETStudy 2.0 background checks before staff begin work.
- Service Failure: License revoked if no actual services are delivered during the temporary phase
- Background Lapses: Allowing staff to work before NETStudy 2.0 clearance is a critical violation
- Delegation Errors: Inadequate documentation of RN supervision and competency checks for LPNs
- Policy Deficiencies: Using generic policy templates that do not meet specific MN Chapter 144A requirements
- Order Lapses: Administering medications or treatments without current, signed physician orders
11. Key Contacts and Resources
Providers should rely on the MDH Home Care Program for licensure questions and the DHS Provider Resource Center for Medicaid enrollment and billing assistance.
The MHCP Provider Manual and the MPSE portal training pages are essential daily resources for maintaining compliance and resolving claim issues.
- MDH Home Care Program: 651-201-4200 or [email protected] (https://www.health.state.mn.us/facilities/regulation/homecare/index.html)
- MHCP Provider Resource Center: 651-431-2700 or 800-366-5411 (https://mn.gov/dhs/partners-and-providers/contact-us/minnesota-health-care-programs/providers/)
- MPSE Portal: (https://mn.gov/dhs/partners-and-providers/policies-procedures/minnesota-health-care-programs/provider-enrollment/mpse/)
- NETStudy 2.0: DHS Background Studies Division (https://mn.gov/dhs/general-public/background-studies/)
- MN-ITS Helpdesk: Accessible via the Provider Resource Center phone line (Option 2)
See all Minnesota services · Minnesota Medicaid consulting · book a consultation.