Control of vets homes called into question

In 1988, after major problems at the Minneapolis Veterans Home, the Legislature pulled control of the home from the state Department of Veterans Affairs and placed it with a new independent nine-member board appointed by the governor.

On Thursday, two members of that Minnesota Veterans Homes Board said the system has grown too complex for a citizen board and should go back under the wing of the Veterans Affairs Department.

The two, who represent the Minnesota Disabled American Veterans (DAV), were joined by the Minnesota American Legion in urging the change to a commission appointed by Gov. Tim Pawlenty to investigate two years of troubling times at the Minneapolis home.

"We have concerns with the current governing model and whether it will be able to provide the expertise, time and commitment to ensure ... continued excellence in care for our Minnesota veterans," said Dean Ascheman of Rosemount.

Ascheman is senior vice commander of the Disabled American Vets and a retired IBM executive.

His statement was also signed by his state commander, William Wroolie of Brainerd, another member of the Veterans Homes Board.

Several commission members met Thursday with representatives of veterans groups to review the commission's work and ask their views on governance.

Representatives of the Minnesota VFW said they will offer their views within 10 days.

At a meeting last week, four other members of the Veterans Homes Board told the commission that they favor keeping the board in charge of the homes.

The commission expects to issue a report in the next month or so that will recommend how to end a long history of the 402-bed Minneapolis home falling in and out of compliance with state rules.

It also will recommend an expanded role for the system -- now expanded to five homes -- that would help frail or disabled veterans at home as well as in institutions.

Board moves to save license

Earlier Thursday, to keep its state license for the Minneapolis home, the governing board voted to pay the state $125,000 a year for up to two years for an outside monitor to watch over the troubled home.

The board already has spent more than $600,000 over the past two years for state-ordered fines and consultants.

On Thursday, it also approved paying its consultant $546,000 more for another year's work to help the home ensure regulatory compliance, reorganize and educate staff, and develop strong leadership.

In a series of regulatory crises since 2005, the state has cited the Minneapolis home for 67 rule violations and fined it $42,300 when nine of the violation problems were not corrected on time. The federal Veterans Administration found 33 violations last year.

Problems appear to have eased at the home, regulators say. But board chairman Jeff Johnson said that several clinical and organizational systems "are broken and that we're working very hard to fix them.

"We don't really have a choice. We have to do this, spend the money," he said. The homes operate at an annual cost of about $80 million -- including $36 million for the Minneapolis home.

"But we are not sacrificing care to pay for these services," he said. "We're improving care, and making sure the improvements will stick this time."

Governor acted twice

Pawlenty stepped in twice after inspections showed problems at the home.

In 2005, he ordered the Veterans Board to hire a consultant to assess care at the five veterans homes. The consultant, Health Dimensions Group of Minneapolis, found care and leadership problems at the Minneapolis home, but no major problems at homes in Luverne, Silver Bay, Fergus Falls or Hastings.

In February, the governor ordered the Health Department to monitor day-to-day operations at the home until a consultant could take over after inspectors found three veterans had died after neglect or medical errors. Health Dimensions became that consultant.

Pawlenty also set up the commission that met Thursday with the veterans groups.

Two years of monitoring

The agreement with the Health Department is for two years of monitoring, costing the Veterans Board up to $250,000, but it can ask for reduced oversight after a year.

In July, the Health Department warned the Veterans Board that state law required it to start action to revoke the home's license because it had nine uncorrected high-level violations within four months; the law triggers suspension after four such violations within two years.

Under the agreement approved Thursday, the home will be given a conditional license for two years, which can be revoked if serious regulatory problems reemerge.

The Health Department will hire a firm, paid by the Veterans Board, to monitor care at the home, offer monthly reports and conduct three major inspections over the next year.

Warren Wolfe • 612-673-7253

Warren Wolfe • wolfe@startribune.com