(The Center Square) – The Tennessee State Veterans’ Homes Board has $1.1 million less than budgeted in the first four months of the fiscal year, but staffing changes will fix the issue by the end of the year, officials told the State Funding Board.
Much of the shortfall comes from the use of agency nurses, Chief Financial Officer Adam Fleming said.
“For basically every dollar of agency we can eliminate, it’s going to save us 33% of that dollar just on a standard employee, per se,” Fleming told the funding board.
Executive Director Ed Harries said staffing is also behind citations from the Department of Veteran Affairs in 2024 reports, which include medication distribution and a minor medication error, both of which were at the Murfreesboro facility. The Centers for Medicare and Medicaid Services rated the facility with one out of five stars, according to a report to the funding board.
“The quality issues we have been dealing with are directly related to agency staffing,” he said.
The veterans’ homes face competition for staffing from Amazon and other companies that often pay more.
“The labor pool of front line workers seems to be exhausted in the middle Tennessee area,” Harries said.
The agency had some maintenance issues, including air conditioning repairs at the Clarksville facility that ran between $100,000 to $150,000, Fleming said.
Department of Finance Commissioner Jim Bryson said he was concerned about the losses, which could be $3.3 million of its $7.6 million in reserves by the end of the year if they continue at the same pace.
“I believe once we continue to improve census and continue hiring and eliminate the agency nurses, that should put us at least break-even for the year,” Fleming said.
Tennessee State Veterans’ Homes operates five facilities in Murfreesboro, Humboldt, Knox County, Clarksville and Cleveland. All of the facilities except for Cleveland are above the state occupancy rate of 71.1%, Harries said.
Cleveland is the newest facility, with an average occupancy rate of 57.7% in October.
Another veterans’ home is under construction in Arlington, which is in Shelby County. The 126-bed intermediate and skilled care nursing facility has a price tag of $68.8 million. It is set to open in the fall of 2025.
Funding for new home construction is a mix of federal and state funds, according to information from Tennessee State Veterans’ Homes. The Department of Veterans Affairs provides 65%.
