A major provider of guardianship services to Dakota County's poor is quitting the business, leaving the courts there and in other counties scrambling to find other professionals willing to look after dozens of vulnerable adults.

Meridian Services Inc. is a Golden Valley company that provides housing, supervision and other services to thousands of elderly, mentally ill and developmentally disabled clients.

Although Meridian's website advertises itself as a provider of conservatorship and guardianship services, recent court filings say the company "is transitioning out" of that business and is seeking replacement guardians for its clients.

"It is my understanding that it was Meridian's choice to get out of the business of doing professional guardianship and conservatorship cases in Minnesota," Dakota County Attorney Jim Backstrom wrote in an e-mail. He said the county had nothing to do with the decision, and any further explanation would need to come from Meridian.

The company isn't saying much.

"We made the decision for business reasons, and that's really all I have to say about it," said Cheryl Vennerstrom, chief operating officer for Meridian and its related entities, Orion Associates, Zenith Services, Orion ISO and Morning Star Financial Services.

Conservators manage a person's money, while guardians oversee their basic needs. Most guardianships and conservatorships are handled by willing family members. When there's a dispute, the courts will appoint a neutral professional. The need for professional guardians is expected to expand rapidly as aging baby boomers grapple with cognitive impairments and dementia.

Meridian is one of five companies that contract with Dakota County to step in and make decisions for poor clients who become wards of the court. Minnesota court records list Meridian as having served as a guardian, conservator, or both, in more than 100 cases in seven counties. Dakota County has paid Meridian to oversee 63 poor clients since at least 2010. Last year, it paid the firm $55,838 for those services. Meridian now gets $43.07 an hour, capped at three to four hours per client per month, depending on their living situation.

Meridian informed Dakota County officials in July that it planned to quit. At the time, it was the county's third-largest provider of guardianship services.

Steven Sahl, program manager for Dakota Conservators Inc. — a competitor with between 130 and 140 clients in Dakota County — said he suspects that Meridian quit because families have become more litigious over the care of their loved ones, driving up the risks and costs of doing business.

"They were no longer willing to hold that liability," Sahl said of Meridian.

That's what led him to sell his interest in Dakota Conservators to an owner with deeper pockets, he said. Sahl said Meridian's decision to quit the business entirely surprised him and has caused "a lot of interesting strife in the legal system" to find replacement guardians.

Just two of the county's four other guardianship contractors said they were in a position to take on new clients. So far, the county has found successors for 50 of Meridian's county-funded clients. Half went to Thomas Allen Inc., and half went to Fiduciary Services of Minnesota Inc.

Thomas Fielder Jr., owner of Fiduciary Services, said he hired another staff member to handle the 25 additional clients he got from Meridian, which amounted to a 30 percent increase in business for his small firm.

Dan Lodahl, president and CEO of First Fiduciary Corp. and president of an industry group called Minnesota Association for Guardianship and Conservatorship, said it can be tough to make ends meet on county contract rates. Fees for privately funded clients range from $75 to $125 an hour or more, which helps offset the costs of taking on poor clients.

"You have to be able to make it," Lodahl said.

Dan Browning • 612-673-4493