by Sarah Craighead Dedmon

Leaked news that the Machias and Caribou Maine Veterans Homes will close was confirmed today, Thursday, Feb. 24, in an official release from Maine Veterans Homes. News of the closure was met with a wide range of emotions Downeast, including sadness, shock, outrage, and calls to action, especially from the Washington County Commissioners' office. 

Families and employees of the Machias home were informed in advance of the public release, which said the decision was made “after several years of consideration.”

“Factors affecting the decision include escalating operational losses, significant declines in the veteran population, and the growing scarcity of qualified workforce, which threaten the financial viability of the entire MVH system,” read the statement.

Maine Veterans Homes is a private nonprofit, not operated by the Veterans Administration, and overseen by a governor-appointed board of 11 trustees, all veterans. In total, MVH operates six Maine facilities in Bangor, Augusta, Saco, South Paris, Machias, and Caribou, each with a different focus of care.

The Machias location, attached to Down East Community Hospital, is dedicated to caring for veterans with dementia.

Washington County Commissioner Chris Gardner says the county will fight the closure “tooth and nail.”

“We just can’t stand for this,” said Gardner. “This idea that it’s the responsibility of a private nonprofit to handle the promise that we made as a society to these veterans is laughable and it’s shameful.”

Maine’s congressional delegation Thursday wrote to MVH expressing “significant disappointment and deep concern” regarding the closures and asked the MVH board to reconsider its decision. 

“The closure of these homes will have a devastating impact on the 82 veterans and spouses of veterans who reside in these facilities…and have rendered honorable service to our Nation, often during times of war,” read the letter, signed by Congressman Jared Golden, Sen. Susans Collins, Sen. Angus King, and Congresswoman Chellie Pingree. “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.”

News of the two facilities’ impending closure, slated to take place in Machias on April 15 and Caribou on May 1, was sent to Governor Mills on Feb. 14 in a letter signed by MVH Board of Trustees Chairman James Settele. The letter notified Mills of the board’s ultimate decision to close and was sent in response to Mills’ earlier request that they reconsider that decision.

The numbers

In the letter to Mills, Settele says the Machias and Caribou homes “have always relied heavily on the financial support of the other Homes and now their combined deficits are nearly $3 million annually and seriously threaten the economic viability of the entire system.” 

That sentiment was repeated in the Homes’ Thursday announcement.

“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 Kelley Kash, Chief Executive Officer.

As a nonprofit, MVH's tax forms do not show profits, but the equivalent  "revenues less expenses." MVH’s 2019-20 tax form, the 990 filed by U.S. nonprofits, shows the organization in the black for two consecutive fiscal years with revenues less expenses of almost $25 million in fiscal year 2019, and more than $19 million in fiscal year 2018.

In the recent past, the numbers were not as strong. MVH’s 990 for fiscal year 2016 shows net losses of -$61,597, with narrow revenues less expenses of $736,209 the year prior.  

In the 2019 fiscal year, MVH opened with $116,065,743 in net assets or fund balances and ended the same year with $142,261,364 in net assets or fund balances.

Gardner says he does not believe profitability should figure into care decisions for veterans.

“We made a promise to these veterans, we’re going to take care of you, except not in Caribou and Machias, because the only way we can do it is if we break even or make money,” said Gardner. “What else do we have to break even on? Do we break even on SNAP? Jail costs? Law enforcement? No, we don’t break even on any of those things. Those are services, those are the things people want to spend money on.”

 Rep. Will Tuell (R-E. Machias) said he was disappointed in MVH’s decision to close.

“It is devastating for the families and workers at the facility. At the same time, I don't think they have any other alternative but to close,” said Tuell. “The Machias and Caribou homes have been losing money hand-over-fist for years despite our attempts in the legislature to try to plug that hole.

The unofficial news broke on the same day a bill by Maine Senate President Troy Jackson (D-Aroostook) was referred to the committee on veteran and legal affairs. LD 2001, “An Act To Fund and Support the Veterans Homes in Caribou and Machias and Require Legislative Approval for the Establishment and Closure of Veterans Homes” would send one-time emergency payments to MVH in the sum of $414,020 this fiscal year, and the same amount in 2022-23. It would also require the legislature to approve the closure of any facility managed by the MVH board of trustees.