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Michigan Veterans Homes report: three facilities at five-star levels, $97 million Marquette rebuilding plan approved with state match
Summary
Anne Zerbe said Michigan operates three state veteran homes that are now five-star CMS-rated; the state provided a $34 million match to secure approximately $63 million federal funds for a $97 million Jacobetti Veterans Home replacement in Marquette, with construction expected to start in May and last 24–36 months.
Anne Zerbe, executive director of Michigan Veterans Homes, told the House Family and Veterans Committee that the state operates three veteran homes — Grand Rapids, Chesterfield and Jacobetti in Marquette — and that all three facilities are currently rated five stars by CMS.
Zerbe said recent improvements and leadership changes addressed prior audit concerns and raised quality to the point that Grand Rapids and Chesterfield now rank among the top nursing homes in Michigan by CMS rating. She told lawmakers the veteran homes rely on a combination of VA per diem payments, Medicare/Medicaid reimbursements, out-of-pocket payments and state general fund support.
Zerbe described an approved capital project to replace the Jacobetti Veterans Home in Marquette. She said the state provided a $34 million general-fund match that the agency expects will unlock approximately $63 million in federal matching funds for a total project budget of about $97 million. The project intends to build a new facility using a "small home" model — community center with embedded households — to provide a less institutional care environment. Zerbe said final federal paperwork was in its final stages and that construction is expected to begin in May with an anticipated 24–36 month build timeline.
On operations and staffing, Zerbe said the homes together employ roughly 900 people when contract staff are included: about 400 state employees (nurses, licensed practical nurses and certified nursing assistants) plus an additional 400–500 contracted staff. She said resident census levels at Grand Rapids and Chesterfield are close to full capacity and that those homes maintain a short emergency bed reserve while operating wait lists; Jacobetti has lower occupancy, a pattern Zerbe said reflects differences in facility layout and service models.
Zerbe told lawmakers that reimbursement changes at the federal level would affect the homes’ finances and that any major reductions in Medicaid or Medicare reimbursements could require legislative decisions about increased state general-fund support. She encouraged committee members to contact the homes to arrange visits and review impact reports she left for the committee.
Committee members asked about wait lists, staffing mixes and loan forgiveness for public workers; Zerbe said state employees generally qualify for federal public-service loan forgiveness and encouraged interested lawmakers to follow up with staff for more detail.
