Ramsey County investigates after housing directors open business caring for the homeless in a hotel

Ramsey County has opened an internal investigation into two leaders of its housing stability department after learning they were running a side business that cares for homeless patients recently discharged from the hospital.

Keith Lattimore, Ramsey County’s housing stability director since 2020, and Kimberly Cleminson, the department’s deputy director since 2021, were operating Care Chexx out of a Brooklyn Center extended-stay hotel for a few weeks until the city yanked the hotel license in late June. The hotel owner and recuperative care facility are now challenging the city’s decision in the Minnesota Court of Appeals, arguing the license revocation was unlawful and asking for it to be declared void.

Care Chexx is a state-enrolled recuperative care provider that offers short-term care for residents with unstable housing who are recovering from surgery or illness. Minnesota has an ongoing shortage of places for people ready to be discharged from the hospital to heal. A Minnesota Hospital Association study from 2024 found one in six days of inpatient care were unnecessary, but patients had nowhere else to recover.

When asked whether Lattimore and Cleminson’s business was a potential conflict of interest, Ramsey County spokesman Casper Hill said in a statement the county immediately opened an investigation “in line with our commitment to transparency and accountability” when officials “learned of a potential county involvement with the business.”

Lattimore told the Star Tribune that Care Chexx is completely separate from his work with Ramsey County. He said staff run the day-to-day of the care facility while he remains committed to his county job.

“They’re separate and have nothing to do with the other,” Lattimore said. “It’s not a fair deal to pull in one versus the other.”

Lattimore said some people in the county knew of his business. The Care Chexx website publicly lists Lattimore as co-founder and Cleminson as partner.

Cleminson did not immediately return the Minnesota Star Tribune’s request for comment.

In 2024, Lattimore earned about $168,000 and Cleminson made $137,000, according to an online database of county salaries.

County officials declined to comment further. County Board Chair Rafael Ortega said the investigation began “several weeks” ago and declined to comment beyond that.

Ramsey County’s housing stability department works with individuals and families experiencing homelessness or on the verge of it. Staffers help residents connect with public aid programs like cash and rental assistance, food stamps and Medicaid.

Lattimore and Cleminson are also the county’s lead staffers on Heading Home Ramsey, a collaboration of community groups, local government leaders and people who’ve experienced homelessness who are working to address the housing crisis.

State business records show Care Chexx was founded by Lattimore as a for-profit corporation in 2023. The facility opened inside the Brooklyn Center hotel Suburban Studios in early June.

The Care Chexx website shares client testimonials, including one titled “Healthcare providers trust Care Chexx.” Another, attributed to “Jay,” has the heading, “Partnering with Ramsey County and Heading Home Ramsey Continuum of Care.” It says “Care Chexx has been an invaluable partner in addressing the needs of our unhoused community members.”

Jen Amundson, a spokesperson with the Minnesota Department of Human Services, previously said that Care Chexx is among about 35 providers enrolled in the state’s new recuperative care program.

More communities have looked to address the need for such facilities as homelessness rates increase and residents report living on the street while trying to recover from serious illnesses, chemotherapy, surgeries and injuries.

Patients are referred to the medical respite facilities by hospitals and clinics when they are discharged. The state requires providers meet several rules for staffing, facilities, services and more.

Through the state program, recuperative care costs are reimbursed at a $300 per day rate for services provided to a person, according to DHS.

Lattimore previously told the Brooklyn Center City Council that all Care Chexx clients have Medicaid or Medicare, which is what services are reimbursed through.

Recuperative care facilities can be held in any setting, including congregate care facilities or shelters. Hotels have become a more common option for communities to serve the homeless or add shelter space, including in Hennepin County.

The City Council said the business did not seek city approvals before opening and determined it does not comply with zoning rules or the hotel license requirements. City staff said they first learned Care Chexx was operating in the city when firefighters responded to a fire alarm at the hotel and saw residents receiving medical care inside.

After the council revoked the hotel license and ordered the recuperative care facility be shut down by July 14, Care Chexx furloughed 30 employees — including registered nurses and other licensed medical staff, security employees and housekeepers.

Care Chexx has a contractual agreement with the Brooklyn Center Suburban Studios location to manage the hotel. Lattimore previously said the property has continued to operate as a hotel with rooms available for typical reservations.

Bryan Huntington, an attorney representing the hotel owner and Care Chexx, previously said recuperative care guests are receiving services that are in line with other hotel offerings, and that the city cannot discriminate against who uses the building “based on socio-economic status.”

As Care Chexx and the hotel owner appeal Brooklyn Center’s license revocation, they have asked the city to stay its decision. Huntington said in an email that the council could consider that request at an upcoming meeting.