Just 6 of 500 state autism providers have sought to comply with new licensure requirement
State officials testified this week that out of roughly 500 autism service providers billing Medicaid under the Early Intensive Developmental and Behavioral Intervention (EIDBI) program, only six have applied for licensure — even as a statutory deadline looms and tougher oversight takes effect.
The disclosure came during a Monday hearing of the Minnesota House Fraud Prevention and State Agency Oversight Policy Committee, where lawmakers pressed officials on years of minimal regulation, announced inspections and low qualification standards for those working with children with autism.
Licensure brings stricter requirements and little interest
Officials acknowledged that EIDBI was created by lawmakers as an unlicensed program, a structure that allowed providers to operate with “less barriers to entry and fewer standards for businesses.”
That is now changing. Under provisional licensure, providers must apply by May 31, disclose ownership, pass background checks, verify staff qualifications and demonstrate billing and documentation practices. Providers who fail to apply “will no longer be allowed to operate.”
“There’s 500 unlicensed providers, and only six applied for licensure, which is shocking,” said Vice Chair Patti Anderson.
Online training can qualify autism providers
The hearing also revealed how low the bar is for some autism service workers under current law.
At the lowest tier of providers, officials testified, “the qualifications are just not that much.”
“So we’re talking about, I think you need to be like, over the age of 18, maybe have a fluency, like in another language besides English, maybe some online training,” said Department of Human Services (DHS) Inspector General James Clark.
No medical degree, clinical license or formal healthcare education is required at that level — even though services may be delivered to children with severe autism.
Clark acknowledged the concern, telling lawmakers the issue is rooted in statute, not enforcement.
“I think the legislature should look at … seriously … the qualifications for providers that we allow to provide services in our Medicaid program,” Clark said.
Announced site visits and limited authority
State officials also confirmed that all 338 site visits conducted at autism centers were announced in advance, typically about 24 hours.
Because the program was unlicensed and not classified as high risk at the time, officials said the state lacked authority to conduct unannounced inspections unless fraud was already suspected.
That will change going forward.
“The providers that choose to be revalidated, choose to provide their ownership information, choose to provide documentation to show that they have the right credentials in place … There’s licensed professionals that need to be involved in each of these agencies,” Clark said. “We will do unannounced on-site visits to all of those providers.”
Prior Alpha News reporting highlights oversight concerns
Multiple people have been charged in recent months for defrauding the EIDBI program. Additionally, a recent review of billing data found that 90% of claims submitted to the program in the past four years were flagged for not matching clear state policies and procedures.
Alpha News has previously reported on autism providers operating under the EIDBI program.
Last year, Alpha News reported on Fountain Autism Center, a Burnsville-based autism therapy provider that has billed the state nearly $2 million in Medicaid reimbursements since October 2023.
Despite the public funding, a neighboring business owner told Alpha News the facility appeared “almost always empty.” Weeks of surveillance footage reviewed by Alpha News showed little activity during posted business hours, including after-school hours and weekends. When Alpha News visited the site, only one employee was present and no children were observed.
Alpha News also reported that the center’s Qualified Supervising Professional — the clinical authority responsible for treatment plans — had multiple felony drug convictions, a misdemeanor conviction for violating an order for protection and two DWIs, according to public records.
In a separate investigation, Alpha News reported on Ausome Development Center, an Edina-based autism services provider that has received $4.8 million in taxpayer funding.
After Alpha News visited the location following a tip that “no children are ever seen” on site, the company sent the outlet a no-trespass letter barring reporters from the property and warning police would be called if they returned. The letter did not dispute any facts reported by Alpha News.
During the visit, reporters observed no children on site, only adult staff. Subsequent review of Ausome’s website found multiple images that appeared to be stock photos and did not match the physical location. Alpha News has also received tips from members of the public who said they were unable to reach the business by phone.
Like Fountain Autism Center, Ausome Development Center was not required under Minnesota law to hold a state license at the time it billed millions in Medicaid funds.
Neither Fountain Autism Center or Ausome Development Center have been charged with a crime.
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