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February 28, 2022

Two veterans homes to close, sparking concern from Maine government officials

The Maine nonprofit that operates veterans nursing homes plans to close its facilities in Machias and Caribou this spring, prompting calls for reconsideration and delay by Gov. Janet Mills and Maine's congressional delegation.

Maine Veterans' Homes cited operational losses, a decline in the number of residents and difficulty hiring workers as reasons for the closures. The organization expects to close the Machias site April 15, while the Caribou facility is slated to shutter May 1. Neither home will close until all residents are placed at other facilities that can meet their needs.

Mills said the closures would displace at least 70 veterans and their spouses.

"Closure of the facilities in Machias and Caribou would significantly reduce the footprint of Maine Veterans' Homes, leaving no homes Downeast or north of Bangor," Mills wrote in a Feb. 9 letter to the board of trustees.

Mills asked the board to delay the closures for two years to allow time to plan for future facilities and care for the veterans. She also said she's directed her administration to prepare other options for the homes to stay open, if the board wants them.

"This offer still stands," Mills said in a statement.

Maine Veterans' Homes operates 640 beds across its six facilities, which include homes in Bangor, Augusta, Scarborough and South Paris. The nonprofit is separate from the federal Department of Veterans Affairs. 

The Machias and Caribou facilities have routinely lost about $2 million combined annually for several years, the nonprofit said. This year, they are on track to lose $3 million.

"The pandemic has exacerbated the operating losses and staffing shortages, making the situation urgent," Maine Veterans' Homes said.

“The mounting operational losses are unsustainable and threaten the financial viability of the entire system. Moreover, the ongoing workforce crisis in these communities is making it nearly impossible to staff day-to-day operations,” said CEO Kelley Kash. “This was a difficult but necessary decision by the all-veteran board." 

File photo
Kelley Kash is chief executive officer of Maine Veterans' Homes, and a U.S. Air Force colonel (retired).

The plans for the two homes also have raised concern from Maine’s four members of Congress.

“The closure of these homes will have a devastating impact on the 82 veterans and spouses of veterans who reside in these facilities,” said U.S. Reps. Jared Golden, D-Maine 2nd District) and Chellie Pingree, D-Maine 1st District, and U.S. Sens. Angus King, I-Maine, and Susan Collins, R-Maine, in a joint letter to the board on Feb. 23.

“Their families, the 123 staff members who currently provide care to these veterans, as well as the surrounding communities and local hospitals will also be adversely affected by these unexpected closures."

The delegation noted that Maine Veterans’ Homes has received federal support, including a $50 million grant to support the construction of a new home in Augusta.

“We also note that MVH’s public 2019 tax return appears to show a gross operating profit of nearly $25 million, which calls into question the urgent need to shutter these homes and warrants a fuller explanation of MVH’s current financial position,” the delegation said.

Additionally, state Senate President Troy Jackson, D-Aroostook, introduced a bill, LD 2001, that would require the board to seek permission from the Legislature before opening or closing a veterans’ home. The bill would also grant more emergency funding to the Machias and Caribou centers.

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