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

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

Keith Lattimore, housing stability director since 2020, and Kimberly Cleminson, the department’s deputy director since 2021, had operated 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 have challenged 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 a shortage of places for people ready to be discharged from the hospital to heal. A Minnesota Hospital Association study from 2024 found 1 in 6 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 that 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 Minnesota Star Tribune that Care Chexx is separate from his work with the county. He said staff run the day-to-day operations of the care facility while he remains committed to his county job.

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

Cleminson did not immediately return the 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. He declined to comment further.

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

State business records show Care Chexx was founded by Lattimore as a for-profit corporation in 2023. The facility opened at Suburban Studios in Brooklyn Center 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 spokeswoman with the Minnesota Department of Human Services (DHS), 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 that providers meet several rules for staffing, facilities, services and more.

Lattimore previously told the Brooklyn Center City Council that all Care Chexx clients have Medicaid or Medicare, which reimburse for the services.

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 Care Chexx did not seek city approvals before opening and determined the business does not comply with zoning rules or the hotel license requirements.

City staff said they first learned Care Chexx was operating when firefighters answered a fire alarm at the hotel and saw residents receiving medical care.

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

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