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October 1, 2020


State Veterans Homes


State Veterans Homes (SVHs) are state-owned and state-
operated facilities that provide nursing home care,
domiciliary care, and adult day health care to eligible
veterans, spouses, and Gold Star parents (parents of a child
who died while serving in the armed forces). The SVH
Program is a federal-state partnership whereby the Veterans
Health Administration in the U.S. Department of Veterans
Affairs (VA) provides federal assistance to SVHs in three
ways:
1. VA provides grants to states to construct,
    acquire, remodel, or modify homes (38 U.S.C.
    §§8131-8138).
2. VA provides per diem payments to reimburse
    states for each eligible veteran receiving care
    in homes that are recognized and certified by
    the VA (38 U.S.C. §1741 and §1745).
3. VA provides payments to states for the hiring
    and retention of nurses (38 U.S.C. §1744).
VA supports three different types of SVH programs in 156
facilities, which may be co-located in one facility:
* Nursing Homes Programs (149 facilities): provide
   accommodation of convalescents or other persons who
   are not acutely ill and not in need of hospital care, but
   who require skilled nursing care and related medical
   services.
* Domiciliary Facility Programs (53 facilities): provide
   a home to a veteran, embracing the furnishing of shelter,
   food, clothing and other comforts of home, including
   necessary medical services.
* Adult Day Health Care Programs (3 facilities): a
   therapeutic outpatient care program that includes one or
   more of the following services, based on patient care
   needs: medical services, rehabilitation, therapeutic
   activities, socialization, and nutrition. Services are
   provided in a congregate (i.e., group) setting (38 C.F.R.
   Part 51.2).

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SVHs were first established during the Civil War and
originally paid for by state funds only, with no connection
to the federal government. Congress first provided
assistance to states in 1888 (Act of August 27, 1888, 25
Stat. 450). The act provided $100 per year for each eligible
veteran residing in a SVH. The method of payment was
changed from an annual payment to a per diem payment in
1960 (the Disabled Veterans Housing Payment Act; P.L.
86-625). The construction grant program for SVHs was first
established in 1964 when Congress authorized $5 million in
appropriations for the program (P.L. 88-450).

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VA provides grants to participating states as a share of the
cost of construction. Specifically, VA provides states up to
65% of the cost to construct, acquire, remodel, or modify


state homes. VA has the authority to set standards for
facilities that utilize the grant program (38 C.F.R. Part 59).


Admission to SVHs is restricted to eligible veterans and
certain categories of veteran-related family members. A
SVH cannot admit or provide care to other applicants.
However, specific admission criteria are determined by the
state in which the SVH is located. In general, eligibility
requirements for admission to an SVH are as follows:
* Veterans in need of skilled nursing care and who have a
   general/honorable military discharge are given
   admission priority; and
*  Spouses, surviving spouses, and Gold Star parents in
   need of skilled nursing care are also eligible for
   admission, if allowed by state policy.
VA is prohibited by law from exercising any supervision or
control over the operation of a SVH, including setting
admission criteria. The states also establish and manage
operating procedures, personnel practices, and other
operational matters. However, VA can require SVHs to
provide documentation related to policies, practices, and
claimed reimbursements.
SVHs that receive VA construction grants are required to
maintain an occupancy rate of 75% veterans to be eligible
for VA per diem payments (see next section). If the SVH
was constructed or renovated solely with state funds, then
SVHs may maintain an occupancy rate of 50% veterans in
order to be eligible for VA per diem payments. All
nonveteran residents must be veteran-related family
members. P.L. 111-246, enacted September 30, 2010,
enabled SVHs to furnish nursing home care to Gold Star
parents of veterans. The mix of residents varies from home
to home. Some states exercise their rights under law to
accept up to 25% veteran-related family members, while
others accept only veterans and some may accept only war
veterans.
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VA provides a fixed per diem to the state for each veteran
provided care in a SVH. VA basic per diem payments to
states are paid for only the care of eligible veterans; care is
paid irrespective of whether the veteran has wartime or
peacetime service.
VA pays a basic per diem rate for each day that the veteran
is receiving care and has an overnight stay (overnight stay
requirements do not apply to adult day health care). In
certain circumstances, per diem is also paid when there is
no overnight stay (i.e., the veteran is temporarily absent
from the facility) if the facility has a 90% or greater
occupancy rate. In those circumstances, payments are made
only (1) for the first 10 consecutive days during which the
veteran is admitted as a patient for any stay in a VA or
other hospital, and (2) for the first 12 days in a calendar


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