Veterans Home on state chopping block

The Montana Veterans Home is an idyllic campus along the Flathead River with an orchard, a hay field, a walking path, historic buildings and a top-notch five-star care rating from Medicaid.

Now the state Legislature is taking a look at closing it down or privatizing its services.

The joint appropriations subcommittee on health and human services recently requested a report on “Alternatives for Funding the Montana Veterans Home.”

The report looks at, among other things, closing the facility down entirely and giving veterans vouchers to live in nursing homes elsewhere.

The report also suggests the Veterans Home could be privatized. The Eastern Montana Veterans Home in Glendive is a contract facility that is owned by the state but run by the hospital in Glendive.

The Montana Veterans Home this year had a budget of $9.93 million and is projected to have a budget of $10.66 million by 2013. About $2.4 million of this year’s budget is paid by federal funds, the remainder by state special revenue funds.

In contrast, the Eastern Montana Veterans Home has a budget of about $1.67 million this year of which $261,865 is provided by state special revenue funding and the remainder is federal funding. Because it is privatized, the facility only has one full-time state employee and a part-time state employee.

The report also compares the home’s operating costs to other comparable private homes. The Veterans Home costs about 40 percent more to run than other homes with a four-star rating or higher, the report noted.

The Montana Veterans Home has the equivalent of 143 full-time employees.

Republican State Sen. Ryan Zinke, who represents Columbia Falls, Whitefish and the Canyon, said he’s opposed to closing the Veterans Home.

“I’m in strong support of the home,” he said. “You’re talking about veterans that have earned their bed.”

Closing the facility has dire consequences. Not only would more than 100 people be out of jobs, the state would have to pay the federal government back about $821,000 for a recent expansion at the home.

The idea is privatizing the Veterans Home would free up state cigarette tax funds that could be used in the general budget. But there are costs associated with that move. For one, the report notes, the state would have to settle with its unionized employees. Secondly, it would still have to maintain the grounds and cemetery and 20-acre campus. Third, and perhaps most importantly, the state would have to find an entity willing to run it.

Kelly Williams, administrator for the state Department of Health and Human Services long-term care division said no outside entities have ever shown an interest in operating the home. It’s up to the legislative committee on how next to proceed. It could ask for a request for proposals — a casting net of sorts where entities would formally bid on the facility — or a request for more information, which is less formal, but would look at whether any entity was interested in running the facility.

A decision by the committee is expected this week.