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Health
Estelle Timar-Wilcox

Attorney General asks court to provide oversight in Rainbow Health closure

The entrance to a health care clinic
The entrance to Rainbow Health’s downtown office in Minneapolis in July.
Ben Hovland | MPR News

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Attorney General Keith Ellison is asking a state court to step in and monitor the dissolution of Rainbow Health, a long-running HIV and LGBTQ+ services center that abruptly shut down in July.

Rainbow Health announced on July 18 that it would close that same day, leaving clients and employees scrambling. 

Former employees are still seeking answers — and back pay. The clinic’s 60 employees who belonged to the SEIU Healthcare Minnesota union had a requirement in their contract for 30 days’ notice before layoffs, which workers did not receive. Employees are also asking Rainbow Health to pay out their remaining sick and vacation time.

Rainbow Health filed for dissolution with the office in August. Ellison petitioned Hennepin County District Court Wednesday to take on oversight of the case as the nonprofit determines how to pay out its debts, including potential payment to employees. 

In his petition to the court, Ellison wrote that Rainbow may not have enough money to both pay employees and honor its other remaining costs and debts. He asked the court to help decide how to prioritize payments.

“I believe court supervision is the proper next step in this case,” Ellison said in a statement. “It not only minimizes the risk of separate disputes about who gets what, it can give the employees the best shot to potentially get paid. I believe the parties can resolve these issues cooperatively and efficiently with the court’s supervision.”

The workers’ union praised the court oversight in a press release. 

“We are heartened to know that Attorney General Ellison and his office are conducting an ongoing investigation, and trust in the court to supervise the dissolution process,” former employee Ash Tifa said in a statement. “The former staff, the people we served, and the LGBTQIA+ and HIV+ communities of Minnesota are still reeling from the sudden closure this summer with no notice.” 

In his court petition, Ellison said former Rainbow Health clients still contact his office asking what happened and looking for information on how to get their medical records. Most client services have transferred to other local organizations, with much of the funding and former clients going to the Aliveness Project. 

Rainbow Health administrators cited financial challenges in their announcement of the closure. They have not named more specific reasons for the shutdown.